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$8.5 Billion shock: California bill could gut solar savings for millions

Jacob Shelton May 1, 2025

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Senator Edward J. Markey and Mayor Jon Mitchell walk past the solar farm on Hathaway Road during the Senators stop in New Bedford to tout the Inflation Reduction Act's clean energy investments. Senator Markey Visits New Bedford To Tout Inflation Reduction Act S Clean Energy Investments

Sacramento, California – A controversial new bill moving through the California State Assembly is drawing fierce backlash from homeowners, solar industry leaders, and clean energy advocates. Assembly Bill 942 proposes to cut the duration of rooftop solar energy credits in half—from 20 years to just 10—and would eliminate those credits entirely when a home is sold or transferred. If enacted, the bill would impact over 2 million rooftop solar customers statewide, including more than 250,000 in San Diego County.

The proposal has been slammed by longtime solar users like Barry Dragon, a retired homeowner in Rancho Peñasquitos, who says it feels like a betrayal.

“It’s pretty upsetting,” said Dragon. “We leased these panels in good faith, and now it seems that faith’s been a bit betrayed.”

Dragon and his wife installed 36 solar panels nearly a decade ago under a 20-year lease costing over $200 a month. The credits they receive from San Diego Gas & Electric for excess power have helped offset their electricity bills. If AB 942 becomes law, Dragon says they could lose thousands of dollars in expected savings.

The Solar Rights Alliance, which represents solar users across the state, says the bill would punish early adopters and erode trust in California’s clean energy programs.

“When you break that 20-year promise, then you put a whole bunch of people underwater,” said Dave Rosenfeld, the group’s executive director. “We should be encouraging rooftop solar—not pulling the rug out from under people.”

The bill’s author, Assemblymember Lisa Calderon (D-Whittier), insists the changes are about fairness. She argues the current credit system shifts grid maintenance costs onto non-solar customers, who collectively paid $8.5 billion last year to subsidize the program.

“For me, it’s a question about fairness and nothing more,” said Calderon, a former Southern California Edison executive. “We need solar to be accessible and affordable—but also equitable.”

Critics, however, point to Calderon’s utility background as a conflict of interest and accuse the bill of prioritizing corporate profits over climate goals. The California Solar & Storage Association warned that breaking long-term agreements with solar users could damage property values and disrupt home sales.

“There is no fixing a bill that breaks contractual promises,” said Brad Heavner, the group’s policy director. “If lawmakers are serious about lowering energy rates, they should address out-of-control utility spending—not gut rooftop solar.”

Despite opposition, the bill passed the Assembly Utilities & Energy Committee in a 10–4 vote on Wednesday night, setting up a larger fight in the full Assembly. Clean energy advocates vow to keep pressing lawmakers to protect solar agreements and keep California’s climate commitments intact.

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