A recent proposal in California is stirring up strong emotions among homeowners with rooftop solar panels. Assemblymember Lisa Calderon, representing Whittier, introduced Assembly Bill 942, which aims to significantly cut energy credits for those who installed solar systems before April 15, 2023. This proposed change has brought together union electrical workers and major utility companies on one side, while solar panel owners and environmental advocates rally against it.
On Wednesday, dozens of solar panel owners gathered outside Calderon’s office in the City of Industry to voice their concerns. They waved signs and expressed their dismay over the potential loss of financial incentives that encouraged them to invest in solar energy. One protester, Jim Matthews from Hawthorne, shared his disappointment, stating that he would have thought twice about his solar panel purchase had he known the state would reverse the incentives.
Calderon, who previously worked for Southern California Edison, explained that her bill is motivated by equity concerns. She claims that 97% of her constituents are facing higher electric bills because of the credits benefiting the remaining 3% who send excess electricity back to the grid. "From an equity standpoint, that’s not fair," she said, advocating for a more balanced approach to solar energy incentives.
The bill proposes to limit energy credits to a period of 10 years instead of the previously promised 20 years and would eliminate incentives if a home is sold. Calderon has received support for the bill from Edison and other major utilities, which argue that it could save non-solar customers up to $500 million by 2030.
However, opposition is strong. Environmental groups, including the Sierra Club and the California Solar & Storage Association, argue that the bill undermines the long-standing promise of 20-year contracts for solar panel owners. They emphasize that the current incentives are crucial for promoting renewable energy and reducing reliance on fossil fuels.
Union representatives from the California State Association of Electrical Workers are backing the bill, claiming it would alleviate financial burdens on non-solar ratepayers. They assert that the costs of solar credits have been unfairly shifted onto those who do not have solar panels, particularly affecting low-income customers.
The debate over the bill is intensifying, with both sides presenting conflicting analyses on the impact of solar credits on electric rates. Proponents of the bill cite a report stating that rooftop solar credits are raising electric bills by $8.5 billion annually for non-solar customers. In contrast, environmental advocates argue that utility spending on infrastructure, rather than solar credits, is the root cause of rising rates.
As the discussion unfolds, a hearing on Assembly Bill 942 is scheduled for April 30, where stakeholders will present their arguments. The outcome of this legislative battle could reshape the landscape of solar energy incentives in California, impacting nearly 2 million homeowners who have invested in rooftop solar systems.