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 31, 2025
As the year comes to an end, we bring you a recap of the most-read stories throughout 2025, with the US taking most of the spotlight.
December 31, 2025
T1 Energy has completed its first sale of Section 45X production tax credits (PTCs) in a deal valued at US$160 million.
December 31, 2025
PV Tech spoke to JD Dillon of Tigo Energy about its work across different scales of solar operation in the US.
December 30, 2025
The PV Review, 2025: Three companies have made headlines for their efforts, and failures, to produce polysilicon in the US this year.
Premium
December 29, 2025
PV Tech spoke with accountancy firm Baker Tilly about the new safe harbour and 'start of construction' rules for US solar projects.
December 24, 2025
The PV Review, 2025: A look back over a turbulent year in US solar policy changes, from the 'Big, Beautiful Bill' to tariff challenges.

Upcoming Events

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
Solar Media Events
November 24, 2026
Warsaw, Poland