Consistently, California positions itself as a climate leader. Yet Assembly Bill 942 threatens to undermine this reputation by forcing homeowners with existing solar systems to abandon their net energy metering plans when their homes are sold. This isn’t just a minor policy tweak—it’s a full-blown assault on renewable energy adopters who made financial decisions based on promises from the state.
The bill would push transferred homes onto NEM 3.0, slashing compensation for excess electricity by a staggering 80%. Translation: the average solar homeowner could see monthly bills jump by $63 after selling their home. Not exactly small change.
Homeowners face an $63 monthly bill increase when selling their solar homes—all so utilities can snatch back 80% of promised compensation.
Remember those 20-year agreements utilities signed with solar customers? Apparently contracts don’t matter anymore. CALSSA, the solar industry’s trade group, isn’t mincing words—they’re calling this what it is: breaking contractual promises with millions of Californians who invested in clean energy.
The utilities—PG&E, Edison, and SDG&E—are naturally thrilled. They’ve been trying to claw back these benefits for years, claiming it creates unfairness between solar and non-solar customers. The bill was introduced by Assemblymember Lisa Calderon, who has a background with Edison, showing the clear utility influence behind this legislation. But here’s the kicker: they’re using the same government that encouraged people to go solar to now punish them for doing so.
This isn’t just bad faith—it’s economically destructive. Solar homes may lose market value. Installation companies face uncertain futures. Thousands of clean energy jobs hang in the balance. And for what? To please utility companies whose transmission spending surged 300% despite flat electricity usage?
The Newsom administration’s support for this measure is particularly rich. Push people toward renewable energy, then yank the rug out from under them when they comply? What message does that send to Californians considering future clean energy investments?
If AB 942 passes, the state’s credibility on climate issues takes a massive hit. You can’t mandate solar on new construction while simultaneously destroying the economics for existing solar customers. This policy contradicts the urgent need for expanded renewable capacity, especially when America faces a funding gap of $578 billion in energy infrastructure. That’s not climate leadership—that’s climate hypocrisy.
References
- https://www.canarymedia.com/articles/solar/california-rooftop-net-metering-clawback-bill
 - https://www.pv-magazine.com/2025/05/05/california-advances-bill-to-end-net-metering-break-solar-contracts/
 - https://www.latimes.com/environment/story/2025-04-30/bill-to-slash-rooftop-solar-incentives-faces-hearing
 - https://solarrights.org/blog/2025/04/15/dont-break-the-solar-contract/
 - https://www.newdaysolar.com/understanding-californias-solar-mandates-for-new-builds-in-2025/