California AB 942 removes controversial residential PV policy

July 17, 2025
Facebook
Twitter
LinkedIn
Reddit
Email
Net energy metering agreements for solar consumers who sell their properties or homes have been maintained. Image: Unsplash

The California Senate Energy, Utilities and Communications Committee has amended Assembly Bill 942 (AB 942) and removed a net metering amendment that would have affected residential solar owners’ rates when acquiring a home or property.

In its previous iteration, AB 942, introduced by assembly member Lisa Calderon – a former utility executive – sought to have customers buying a property with an existing solar system to switch their net energy metering (NEM) tariff to the most current one instead of inheriting the one from the previous owner.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Had this policy gone through, it would have exposed new owners to a significant decline in net metering payments, with export rates for selling electricity back to the grid slashed by nearly 75% between NEM3.0 and previous iterations. The bill will be amended to remove this policy as per the committee’s analysis available here.

“This decision is a tremendous victory for California families and businesses who invested in rooftop solar with the state guarantee that their net metering agreements would remain intact—even if they sell their homes,” said California Solar & Storage Association (CALSSA) executive director, Brad Heavner.

Back in May, when the bill passed the California State Assembly’s Appropriations Committee, AB 942 had already been amended from its original version, which had proposed sunsetting all legacy NEM contracts after ten years instead of 20.

CALSSA was among the more than 100 environmental, climate, clean energy, consumer, economic justice and affordable housing advocates, who last month signed a letter calling on California legislators to reject AB 942.

JD Dillon, chief marketing and customer experience officer at module-level power electronics supplier Tigo Energy: “We’re encouraged by the Senate Energy, Utilities and Commerce Committee’s decision to amend AB 942. The previously drafted version of the bill would have undermined consumer confidence, devalued home solar investments, and stalled progress toward California’s clean energy goals.

“The solar industry thrives when legislation supports innovation, consumer choice, and long-term resilience, not when it introduces unnecessary friction between emerging technologies and legacy power structures.”

This positive outcome for the solar residential industry in California comes at a time when, at the federal level, residential solar has been heavily affected by the reconciliation bill passed earlier this month.

Residential tax credits (Section 25D) are set to end by the end of this year, but residential solar projects will still be eligible to apply for investment tax credits and production tax credits.

16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

December 10, 2025
The US SEIA has named board chair Darren Van’t Hof as interim president and CEO, to begin work 20 January 2026.
December 10, 2025
The global utility-scale solar PV sector has exceeded the threshold of 1TW of operating capacity, according to Wiki-Solar.
December 10, 2025
The US solar industry registered its third-best quarter with 11.7GW of new capacity installed in the third quarter of 2025.
Premium
December 9, 2025
Rooftop solar PV generated nearly twice the output of utility-scale solar throughout November 2025, maintaining a 1.9:1 ratio in Australia.
December 9, 2025
Indian solar PV manufacturer Waaree Energies has signed a 288MWp solar module supply deal with US project developer Sabanci Renewables.
December 5, 2025
Origis Energy has raised US$265 million in finance from Advantage Capital to support the development of a 305MW solar PV portfolio in the US.

Upcoming Events

Upcoming Webinars
December 17, 2025
2pm GMT / 3pm CET
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA