A new bill, AB 942, recently passed by the California State Assembly, could bring back compensation for rooftop solar customers who export excess energy to the grid. The legislation is seen as a response to criticism over NEM 3.0, the current net metering policy that drastically reduced payments to solar users.
Key Points:
- AB 942 would allow solar users, especially low- and middle-income households, to be paid for excess energy.
- The bill directly challenges NEM 3.0, which led to a steep decline in solar rooftop adoption due to reduced financial incentives.
- Utilities like PG&E oppose the bill, arguing it could increase costs for non-solar customers.
- Supporters highlight the bill as a step toward energy equity and environmental justice.
- The legislation still needs to pass the State Senate and receive the governor’s signature to become law.
AB 942: A New Chapter for Rooftop Solar in California
Policy Background and Motivation
California’s NEM 3.0 policy, implemented in 2023, significantly cut the value of solar energy exported to the grid. This led to a sharp drop in new solar installations. AB 942 aims to correct that by reinstating a fair compensation mechanism—particularly for underserved communities who are often left out of the clean energy transition.
Support and Opposition
While environmental and social justice groups strongly back the bill, major utilities claim it would unfairly shift grid costs to customers without solar panels. The political divide centers on affordability vs. equitable access to clean energy.
Broader Impact
If passed, AB 942 could revive California’s residential solar sector, expand energy access to marginalized groups, and potentially inspire similar legislation in other U.S. states.
Conclusion
AB 942 represents a major policy shift that seeks to restore financial viability to rooftop solar in California—especially for lower-income residents—while reigniting debates on fairness, utility costs, and clean energy goals.
