More than a million houses in California that invested in solar energy on the roof may have withdrawn their net measurement contracts under the proposed AB 942 bill.
A new proposal in the legislative power of California, AB 942Try to break almost two million solar racks on the roof and move existing customers to a tariff structure that would lower credits on their electricity accounts by around 80%. If adopted, the proposal would increase the invoice of a typical solar customer by $ 63 per month.
More than two million solar projects on the roof are installed in California on houses, schools, small companies and other tariff paying customer sites. Californians invested tens of thousands of dollars or introduced 20+ years of contracts with the expectation that they would secure stable electricity percentages in the coming two decades or more predictable, stable electricity percentages.
These predictable costs for electricity in the midst of the steadily raising of the utility bed electricity percentages were made possible by Net Energy Metering (NEM), so that customers can export surplus production during the day to the local network in exchange for credit on their electricity accounts.
“AB 942 is a direct attack on families in California who have made long-term investments in solar energy with the promise of honest, 20-year-old net energy measurement agreements guarantees that were clearly set out in State’s own consumer protection documents,” said Solar, Western Regional.
In April 2023, California transferred its NEM structure to a net invoicing rate, also known as NEM 3.0. The new tariff structure lowers the rate that is credited to new solar customers by around 80%. The Californian solar market on the roof Then crashed Because the return on the investment for installing a project was severely damaged.
The shift to NEM 3.0 Lower the average export percentage In California from $ 0.30 per kWh to $ 0.08 per kWh. Now AB 942 proposes to force existing solar customers to the unfavorable NEM 3.0 rates.
An average home use 870 kWh electricity per month. Solar customers usually export 20% to 40% From their production to the schedule. This means that the average net measuring percentage decrease and based on a production export of 30%, solar customers would increase their monthly accounts by $ 63 under the proposed account.
The account requires that from 1 July 2026 a eligible customer generator who has taken service for 10 or more years on the basis of NEM 1.0 or 2.0, no longer has the right to take service under that contract or rate. The account would then require existing customers to be moved to the NEM 3.0 rate.
“More than a million Californians have signed contracts and guides issued by the State, and trusting that supervisors would keep their word,” Campbell said. “The retirement of those agreements would be a dangerous precedent for all consumer protection in California.”
The bill was submitted by Assembly member Lisa Calderon. Calderon had a 25-year term of office in government affairs and political compliance role with one of the State utilities, in southern California Edison.
Solar on the roof was studied to deliver roughly $ 1.5 billion in savings on Utility Ratepayersincluding non-Zonne customers, in 2024. But the utilities have made California Solar on the roof has the scapegoat For high electricity percentages.
According to the California Public Utilities Commission (CPUC), the three largest electric utilities PG&E, SCE and SDGE have increased customer rates by 110%, 90%and 82%respectively in the past decade. Despite the relatively flat electricity consumption, the transmission and distribution expenditure by utilities has increased by 300%.
A registration Letter including nearly 100 organizations opposes AB 942.
“To tackle the rising rates, California has to concentrate on what is really wrong with our energy system: uncontrolled utility expenditures and profit in the field of registration,” the letter says. “AB 942 would increase the rates, limit the choice, derail the progress of the state of the state, run the public confidence in the government and actually reform the hard work of the actual reform of the utility industry of our state.”
(Read: “Six ways for California to lower the electricity rates))
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