A measure that might deprive a solar project owner of their net-metering revenue upon the transfer of a property was approved by a California State Assembly committee. Assembly Bill 942, which was authored by Assemblymember Lisa Calderon (D), was approved by the Assembly Appropriations Committee. In its most recent version, it would terminate an existing net-metering agreement with a utility if the property were transferred to a third party.
It is the solar system, not the property owner, that is bound by the 20-year net metering agreements that all solar users sign. The value of solar investments for middle- and working-class Californians is diminished when these agreements are undermined when a home is sold or transferred, creating a risky precedent that California’s clean energy pledges cannot be relied upon, stated Brad Heavner, executive director of the California Solar & Storage Association (CALSSA), in a press release.
Solar installations are transferred to the new property owner within the parameters of the existing net metering contract, according to current California utility wording. Earlier last month, wording from a previous draft of AB 942 that would have shortened net metering compensation terms from 20 to 10 years was removed. Under AB 942, a net metering agreement would be adjusted to NEM 3.0, the current net billing tariff, which significantly alters the remuneration for solar energy fed into the grid when a property with solar panels is transferred to a new owner.
In addition to CALSSA, several other state organizations that oppose AB 942 have joined a coalition of over 100 advocacy groups in their petition to have the measure removed.
“The utility’s claim that all solar users are affluent and save excessive amounts of money is untrue. Customers in the working class who want to stabilize electricity prices are the ones who use solar the most. Consumers sign long-term leases to save money over time, and they shouldn’t be penalized for having relied on what the state has until this point referred to as a “promise” of consistent policy,”
Heavner said.
This coming Tuesday, the measure will return to the California State Assembly floor for more discussion after clearing the Assembly Appropriations Committee.
