California Overhauls Rooftop Solar Incentives in AB 942

Rooftop solar systems contribute to California's energy landscape.

News Summary

California has revised Assembly Bill 942, revising its rooftop solar incentives amid public backlash. The new version, backed by Assemblymember Lisa Calderon, aims to enhance consumer access to carbon credits without reducing subsidies for solar energy, addressing concerns from both solar activists and non-solar customers. This legislative shift highlights the dynamic tension between promoting renewable energy and ensuring equitable treatment for all electricity consumers in the state.

California has made significant changes to Assembly Bill 942, effectively overhauling the proposed rooftop solar incentives amid rising public concern. The revised version of the bill, backed by Assemblymember Lisa Calderon, no longer includes provisions aimed at reducing subsidies for solar energy, focusing instead on enhancing consumer access to carbon credits.

The original intent of AB 942 was to alleviate what was perceived as an unfair cost-shift onto non-solar customers, a situation where the financial burden of supporting solar subsidies disproportionately affected those without solar installations. This included a proposal requiring new property owners with rooftop solar systems to adopt a lower net metering tariff, which would negatively impact the agreements made by previous homeowners.

During a Senate Energy, Utilities and Communications Committee meeting on July 15, the bill underwent considerable amendments. Activists for solar energy, citing a robust public outcry against the initial proposal, noted that the pressure contributed significantly to the bill’s pivot in focus. They claimed that the presence of demonstrators at protests indicated widespread opposition, leading them to adjust their stance and withdraw any opposition to the bill as it stands now.

Greg Sparks, a solar homeowner from Davis, expressed his approval of the amendments, which preserve the existing protections for rooftop solar installations. This sentiment was echoed by others in the industry who recognized the importance of maintaining support for solar energy in California.

Senior representatives within environmental organizations, like the Environmental Working Group, acknowledged the success of public advocacy efforts against the original bill’s provisions. They emphasized that the changes met the concerns regarding equitable treatment for all electricity consumers.

Calderon defended the new approach of AB 942, asserting that it represents a strategy aimed at reducing electricity costs for the majority of Californians. She indicated that providing increased access to carbon credits could potentially benefit more residents than the previous version of the bill.

As AB 942 moves forward to the Senate Appropriations Committee, it may face additional amendments or the possibility of being stalled altogether. Advocates for solar energy remain vigilant as the discussion surrounding rooftop solar continues, particularly with the existence of related legislation like Senate Bill 710, which holds the potential to favor solar installations in the state.

Analysis from previous legislative measures pointed out that rooftop solar systems have contributed to significant economic disparities and imposed cost burdens on non-solar households. In the last year alone, the financial implications of the existing rooftop solar incentives have amounted to over $8.5 billion, impacting approximately 10 million Californians who do not use solar energy. The original incentive framework, which dates back to the mid-1990s, initially aimed at promoting clean energy adoption, has inadvertently led to escalating costs for these non-solar customers.

Public protests against AB 942 also focused on speculations that changing subsidies could lead to decreased property values for homeowners utilizing solar systems. This potential consequence drew criticism towards Calderon, particularly considering her previous ties to Southern California Edison, complicating public perception regarding her motivations for the legislation.

The evolving nature of AB 942 reflects a broader trend of regulatory shifts impacting how California structures compensation for solar energy. Given the economic and social implications involved, the future of rooftop solar incentives and their equitable treatment remains a topic of ongoing contention in the state’s energy landscape.