California’s Solar Vendetta: Why We Must Stop AB 942 and Save Rooftop Solar

California once proudly led the nation in solar energy adoption, pioneering policies that made rooftop solar accessible and affordable to millions. Yet today Governor Gavin Newsom, his appointed California Public Utilities Commission (CPUC), and powerful utilities like PG&E and Southern California Edison (SCE) are engaged in what can only be described as a coordinated vendetta against solar – systematically dismantling the very industry our state once championed.

First came Net Energy Metering (NEM) 3.0 in late 2022, the CPUC’s policy drastically reducing incentives for homeowners and businesses to install solar by reducing the compensation for surplus electricity sent back to the grid. Despite overwhelming public opposition, the CPUC used misleading arguments to justify their stance. Instead of supporting practical solutions like battery storage, they reduced solar’s value overnight, giving the industry only four months to adapt to these devastating new rules.

Then, to soften the blow of NEM 3.0, the CPUC promised Californians substantial funding for battery storage installations to support solar adoption and grid resilience. But just weeks before its scheduled launch in July 2023, Governor Newsom’s administration abruptly cut this promised funding, leaving the solar industry and consumers stranded without critical support.

Next, the Newsom administration selectively enforced prevailing wage requirements exclusively on private-sector commercial solar projects – no other trades were similarly targeted. This selective enforcement significantly inflated solar installation costs, making solar uniquely less affordable compared to other building improvements and deliberately reducing its competitiveness.

Now, California’s rooftop solar faces its most existential threat yet: Assembly Bill 942 is authored by Assemblymember Lisa Calderon – a former lobbyist for Southern California Edison (SCE) who continues to receive substantial campaign funding from the utility. AB 942 seeks to retroactively slash existing solar customers’ NEM agreements from a guaranteed 20-year term to just 10 years. If homeowners sell their property within this new 10-year window, their solar agreements would immediately terminate, drastically reducing home value and financial predictability.

AB 942 isn’t just a blow to solar – it’s a betrayal of trust. Imagine signing a 20-year fixed-rate mortgage with your bank, planning your financial future around those terms. Then, halfway through, the bank unilaterally changes the deal: now it’s only fixed for 10 years, and after that, you’re on the hook for new, unpredictable terms – or worse, you lose the agreement altogether. That’s exactly what AB 942 proposes for solar customers. It retroactively changes a 20-year agreement Californians signed in good faith, and if they sell their home within the shortened window, their NEM agreement is terminated entirely.

Proponents of AB 942 rely on yet another debunked argument – the myth of a “cost shift,” claiming solar customers unfairly raise costs for others. In reality, independent economic analyses demonstrate precisely the opposite: rooftop solar saved Californians $1.5 billion in infrastructure costs in 2024 alone by reducing strain on the grid and avoiding expensive utility investments.

Rather than reward solar adopters for easing the burden on the grid and reducing statewide energy demand, California’s leaders have aligned with utilities to punish them – undermining one of the most effective climate and cost-saving tools available to working and middle-class families.

And make no mistake – California’s investor-owned utilities are not struggling to make ends meet. In fact, they are thriving. In 2024, PG&E reported record profits of $2.47 billion (+10.39% from 2023), while SCE earned $1.28 billion in net income (up from $1.2 billion). These massive earnings were driven not by improved efficiency or customer service, but by rate hikes and favorable regulatory structures.

The CPUC, appointed by Governor Newsom, played a key role in enabling these profits. In 2024 alone, the CPUC approved six separate rate hikes for PG&E. At the same time, SCE was granted a 10.75% shareholder return rate – the highest among California’s investor-owned utilities. These decisions have directly fueled revenue growth for the utilities while shifting the burden to everyday Californians.

The truth is, skyrocketing electricity rates stem directly from utilities’ out-of-control spending on grid infrastructure, which has ballooned by 130 to 260% over the past decade. These unnecessary expenses are incentivized by a guaranteed 9% profit margin on every dollar utilities spend, encouraging overspending instead of innovation. Meanwhile, overall electricity demand has remained flat, thanks in large part to the success of rooftop solar in reducing grid strain.

And what do consumers get in return? Soaring bills. In January 2025, California’s average residential electricity rate hit 30.22 cents per kilowatt-hour, making it the second highest in the nation, behind only Hawaii. That’s nearly double the national average. Families are paying more than ever for basic energy needs, while being penalized for trying to take control of their energy costs through solar.

It’s clear this sustained attack against solar – first NEM 3.0, then the sudden withdrawal of battery funding, then the selective enforcement of prevailing wages, and now AB 942 – is no coincidence. It’s a deliberate vendetta aimed at dismantling the rooftop solar industry to preserve the profits of powerful utilities at Californians’ expense. Meanwhile, California has already lost its leadership to states like Texas and Florida, which are registering strong solar growth precisely because they support – not sabotage – the solar industry.

Montecito and all Californians must speak out against this orchestrated assault. AB 942 is not just poor energy policy – it’s fundamentally anti-consumer, anti-environment, and anti-democratic.

Take action today: Call your Assemblymember and demand they vote NO on AB 942. https://findyourrep.legislature.ca.gov/ 

Protect California’s clean energy future, safeguard your financial security, and stand against political interference by special interests.