Business, Finance & Tech
New California Bill Could End Solar Energy Credits When Homes Are Sold
A proposed bill in California could significantly change the landscape for rooftop solar owners. Assembly Bill 942 would eliminate energy credits for new homeowners when buying a property with solar panels—credits that have been grandfathered in since the mid-1990s.
Currently, homeowners who install solar are locked into 20-year agreements with utilities like Southern California Edison, earning credits for excess energy sent back to the grid. Under AB 942, those credits would end upon sale of the home.
Nate Otto, owner of Palm Springs-based Hot Purple Energy, says that would gut the resale value of solar-equipped homes. “It negates about 50 to 75 percent of the value of the solar system for anybody that's buying their home,” he said.
Otto also warns it could undermine public trust. “This bill really shows that our legislators don’t care about the contracts we sign,” he added.
AB 942 was introduced by Assemblymember Lisa Calderon, who represents part of Los Angeles County. She says the bill aims to fix an unfair cost shift—arguing that non-solar customers, including renters and low-income households, end up paying more to maintain the grid while solar users benefit from subsidies.
“These are people that should have a truly low-income rate,” Calderon said. “Paying $22 off the bat just for being in a subsidy zone is a lot.”
Brad Heavner, Policy Director for the California Solar and Storage Association, disagrees with the bill’s logic. “The real reason utility rates are high is decades of unchecked utility spending,” he said. “Solar customers reduce demand and grid strain, helping lower long-term costs.”
As AB 942 moves through the legislature, it’s sparking a heated debate about fairness, contracts, and California’s clean energy future.
Explore: NBCPalmSprings.com, where we are connecting the Valley.
By: Caitlyn Kelley
May 16, 2025
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