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California Assembly Advances Bill to End Solar Credits on Property Sales

AB 942, which initially proposed cutting rooftop solar credits to 10 years, has been amended to focus solely on terminating credits when properties are sold.

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Solar panels installed on the roof of the Santacruz family home in the Lomita neighborhood in southeast San Diego. The system was installed as part of the Solar Equity Program that provides solar power at little or no cost to families who qualify. (Rob Nikolewski/The San Diego Union-Tribune)
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Overview

  • The Assembly Utilities & Energy Committee removed the 10-year sunset provision from AB 942 but retained the clause ending solar credits upon property sales.
  • The bill now moves to the Assembly Appropriations Committee, with significant opposition from solar advocates, schools, and environmental groups.
  • Proponents, including Assemblymember Lisa Calderon and major utilities, argue the bill addresses cost shifts to non-solar customers, citing $8.5 billion in utility costs last year.
  • Opponents warn the legislation undermines 20-year contractual assurances given to over two million solar customers and could trigger legal challenges.
  • The revised bill excludes municipal utility customers and has sparked widespread public backlash, with lawmakers reporting an overwhelming volume of constituent opposition.