A proposed bill in California aims to significantly cut the energy credits for homeowners with rooftop solar panels, stirring up conflict between utility companies, electrical workers, and solar panel users. The bill, Assembly Bill 942, was introduced by Assemblymember Lisa Calderon, a Democrat from Whittier, and it has sparked protests from solar panel owners.
On Wednesday, dozens of rooftop solar owners gathered outside Calderon’s office in the City of Industry to voice their concerns. They waved signs and made their feelings clear about the proposed changes to the credits they receive for excess energy produced by their solar systems. One protester, Jim Matthews from Hawthorne, expressed his disappointment, stating he might not have invested in solar panels if he had known the state would change the incentives.
Calderon, who previously worked for Southern California Edison for 25 years, explained that her motivation for the bill comes from a desire for fairness. She noted that 97% of her constituents are paying higher electric bills to subsidize the solar credits for the remaining 3%. "From an equity standpoint, that’s not fair," she said, emphasizing that the bill aims to address this imbalance.
The proposed legislation would limit energy credits to ten years, down from the previous 20-year commitment made to solar owners. Additionally, it would eliminate credits if the property is sold. Supporters of the bill, including major utility companies like Edison, Pacific Gas & Electric, and San Diego Gas & Electric, argue that it would lead to savings for non-solar customers. They estimate that those without solar could save about $500 million by 2030 if the bill passes.
Union electrical workers have also rallied behind the bill, believing it would ease financial burdens on non-solar ratepayers. Scott Wetch, a lobbyist for the California State Association of Electrical Workers, criticized the current subsidy system, claiming it is unfair to low-income customers who do not benefit from solar energy.
However, environmental groups and solar industry representatives are strongly opposed to the bill. They argue that it undermines the long-term contracts that have encouraged solar investments in California. These groups highlight that the state’s Public Utilities Commission previously stated that the contracts would last for 20 years, and they believe the current analysis supporting the bill is flawed.
The debate continues, with the next hearing on AB 942 scheduled for April 30. As the discussion unfolds, the future of rooftop solar incentives in California remains uncertain, with passionate voices on both sides advocating for their positions.