Assembly advances revised NEM reform after hours of public comment and testimony

The Assembly Utilities and Energy Committee voted to pass AB 942 (as amended) to the Appropriations Committee after lengthy public comment from solar owners, local officials, labor and industry groups.

AB 942 would change several aspects of California’s rooftop solar subsidy structure. Under the version the committee passed, the bill no longer moves legacy net energy metering (NEM) customers off the older tariff after a fixed 10‑year period (that provision was removed in committee). The measure, as amended, would require new owners who acquire homes with existing solar systems to take service under the current net billing tariff adopted by the California Public Utilities Commission (CPUC) and would end the distribution of a separate “climate credit” to NEM customers beginning Jan. 1, 2026.

Why it matters: Supporters say AB 942 reduces an increasingly large cost shift from non-solar ratepayers (renters, low‑income households and inland customers who do not have rooftop systems) and will lower bills for those who currently bear the hidden subsidy. Opponents say the bill retroactively alters the equity of earlier, widely publicized NEM terms and would penalize homeowners who invested in rooftop solar as a hedge against rising electricity bills.

What supporters told the committee Rachel Koss of the Coalition of California Utility Employees, testifying in support, called NEM reform “the most straightforward, the most equitable, the most impactful thing you can do” to lower bills for non-solar customers, and said changing the length and structure of the subsidy could save billions statewide through 2043.

Robert Berrigan of ICON CDC and other community-development witnesses told the committee legacy NEM has produced a disproportionate cost shift and asked lawmakers to “end the days” in which rooftop-solar incentives are borne largely by non-solar households.

What opponents told the committee More than a hundred members of the public and many organizations testified in opposition. Solar owners and leaseholders repeatedly said they made multi‑year financial commitments on the assumption of a stable 20‑year subsidy and argued those commitments would be harmed if the state loosened the terms. Economist Ahmed Farooqi told the panel AB 942 risks breaching the expectations of roughly 2 million households that installed rooftop systems and warned of reduced consumer confidence.

Industry groups, school districts and public‑service organizations also opposed the change; several witnesses asked the committee to focus on utility cost controls instead of changing NEM arrangements.

Roll call and outcome The committee voted to pass AB 942 as amended to the Appropriations Committee. The roll call recorded 10 ayes and 4 noes; the clerk left the roll open for absent members to add on.

What’s next Because the committee removed the 10‑year sunset from the bill, the debate will now move into the Appropriations Committee. Lawmakers and stakeholders said they expect follow‑up negotiations addressing both affordability for non‑solar customers and protections for existing system owners.

Ending note Committee members split on the measure but many said they welcomed continued stakeholder talks. Assemblymember Calderon, author of the measure, told the committee she intends to keep engaging all sides so the next version better balances ratepayer affordability and solar deployment.