California lawmaker rolls back proposal to reduce rooftop solar subsidies

By Alex Nieves | 07/17/2025 06:46 AM EDT

The bill language would have lowered payments for customers who installed solar before 2023.

Solar panels on rooftops of a housing development in Folsom, California.

State Senate Democrats overhauled a bill that would have reduced subsidies for most rooftop solar customers. Rich Pedroncelli/AP

Democratic California Assemblymember Lisa Calderon agreed Tuesday to remove language from a bill that would have reduced subsidies for many rooftop solar customers.

What happened: The state Senate Energy, Utilities and Communications Committee scrapped a provision in AB 942 that called for reducing payments homeowners who installed solar panels before 2023 receive for selling surplus energy back to the electric grid through a process called “net metering”.

One group of customers — homeowners whose annual electric bills are under $300 — would still take a hit under the proposed law. They would no longer receive a credit funded with cap-and-trade auction revenues — a change that will allow California to better assist households that need greater support paying energy bills, the committee said in an analysis.

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The amendments also cut from the bill a requirement that new homeowners receive fewer subsidies than previous owners when purchasing homes that received net-metering credits. The California Public Utilities Commission voted in 2022 to end net metering for new solar customers, deciding instead to reduce payouts.

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