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California proposes break to rooftop solar contracts, raising average bills $63
Over one million California households that invested in rooftop solar may have their net metering contracts rescinded under the proposed bill AB 942.
A new proposal in the California legislature, AB 942, seeks to break nearly two million rooftop solar net metering contracts and shift existing customers onto a rate structure that would decrease credits on their electricity bills by roughly 80%. If passed, the proposal would increase a typical solar customer’s bill by $63 per month.
Over two million rooftop solar projects are installed in California on homes, schools, small businesses, and other rate paying customer sites. Californians invested tens of thousands of dollars or entered 20+ year contracts with the expectation that they would secure predictable, stable electricity rates for the next two decades or more.
This predictable cost for electricity amid steadily increasing utility-provided electricity rates was made possible by net energy metering (NEM), which enables customers to export excess daytime production to the local grid in exchange for credit on their electricity bills.
Millions of Californians made a deal with their government. The government has decided they can change the terms any time they like.
In April 2023, California moved its NEM structure to a net billing tariff, also known as NEM 3.0. The new rate structure cuts the rate credited to new solar customers by roughly 80%. The California rooftop solar market subsequently crashed as the return on investment for installing a project was heavily damaged.
The shift to NEM 3.0 cut the average export rate in California from $0.30 per kWh to $0.08 per kWh. Now, AB 942 proposes to force existing solar customers onto the unfavorable NEM 3.0 rates.
In changing the terms for new customers, California basically threw their entire existing solar industry into the proverbial toilet. Now they want to go back and screw over every customer who already had the prior terms.
According to the California Public Utilities Commission (CPUC), the state’s three largest electric utilities PG&E, SCE and SDGE have raised customer rates by 110%, 90% and 82%, respectively, over the last decade. Despite relatively flat electricity usage, transmission and distribution spending by utilities has increased 300%.
So you use the same or even less power and it just costs you double but don't worry, they are making sure the rates will continue to go up no matter what choice you make.
This is why Democrat threats ring hollow. There's no Republicans or Trump involved with these matters. This is just how Democrats screw over their own constituents all the time. They make a deal, steal your investment and then their buddies all get large increases in the number of dollars they get for delivering the same or less service.
When you question why this happens, you're the problem not them.
"If you don't do what we say.. the greedy energy companies will raise all your rates for energy...."
That's already happening and Democrats are leading the charge.