California Assembly Bill 942 sparks debate over solar subsidies

BAKERSFIELD, Calif. (KBAK/KBFX) — Assembly Bill 942 has passed to the California State Senate with a vote of 46 to 19.

The bill, introduced by Assemblywoman Lisa Calderon in 2015, seeks to reduce electricity bills for non-solar ratepayers by minimizing the financial burden caused by existing solar-panel subsidy programs.

Calderon said the cost shift amounted to an estimated $8.5 billion dollars last year and is expected to increase if no action is taken. “This bill does two things. First, upon the sale of a home with rooftop solar, this bill requires the new homeowner to take service under the net billing tariff, which is the current solar subsidy program. And second, this bill eliminates the climate credit for solar customers, which would redistribute $220 million to ratepayers without solar,” Calderon explained.

The bill received support from Fix The Cost Shift, a coalition representing about 2 million workers and businesses across California. They argue that the current bill primarily benefits homeowners who can afford solar panels, while those who cannot are left with high utility bills. “Over time, rates have significantly increased, and these subsidies have led to a cost shift onto non-solar customers to ensure grid maintenance,” the coalition stated.

However, some homeowners, like Adrian Perez, owner of A&M Solar, express concerns about the bill’s impact. “I just think this bill all the way around is going to hurt our economy more than help us,” Perez said. He fears that residents might be discouraged from adopting solar energy due to the changes proposed in the bill.

Perez noted that an average utility bill with PG&E for a homeowner can be about $800 or more during the summer, which can be challenging for some to pay. He emphasized that solar panels provide financial relief and stability. “But not only that, it’s that peace of mind. They can know every month that their bill is $200 dollars,” Perez said.

Larry, a neighbor of Perez, shared his satisfaction with switching to solar. “I don’t have a bill over $270 in the summer no more,” he said.

However, Dennis Webb, another Bakersfield resident, expressed uncertainty about installing solar panels if he were a new customer. “If I didn’t have any and I was thinking of getting them and then this comes up, I’d probably have to wait to see what they do. But it would definitely impact my decision,” Webb said.

If the bill does move forward, then it would take effect January 1, 2026.