California solar homebuyers just dodged a $756-a-year bullet

California solar homeowners just scored a major victory. The state Senate Energy Committee voted 9-4 to amend Assembly Bill 942, striking controversial language that would have voided net metering contracts when solar-equipped homes change hands.

This decision protects more than one million California families who have rooftop solar by honoring their 20-year net metering agreements, according to the California Solar and Storage Association (CALSSA). If the original version of AB 942 had passed, those contracts would have been broken. The amendment now ensures these contracts stay in place—even when a home is sold—preserving the financial benefits that made solar an attractive investment in the first place.

“By ensuring that these contracts are honored, the Senate Energy Committee and Chairman Becker reinforced consumer trust, safeguarded clean energy investments, and sent a clear message that California stands by its commitments to climate action and energy innovation,” said CALSSA Executive Director Brad Heavner in a press release.

This victory couldn’t have come at a more important time for the residential solar industry. With the 30% federal tax credit ending after December 31, 2025—nearly a decade ahead of schedule—due to President Trump’s megabill, the industry is bracing for tough headwinds.

The only challenge that has even come close was California's transition to NEM 3.0 in April 2023, which saw a similar rush as homeowners scrambled to install solar before the less favorable rates took effect. However, that policy change was concentrated in one state, whereas the federal tax credit elimination will impact the entire country, making this a far more significant threat to the industry's growth.

As the nation's largest residential solar market, California plays a large role in setting industry trends. When the Golden State weakens solar policies, the effects ripple nationwide. That's why this amendment matters beyond California's borders—it shows that consumer protection and clean energy progress can still win, even in tough political times.

"This decision is a tremendous victory for California families and businesses who invested in rooftop solar with the state guarantee that their net metering agreements would remain intact—even if they sell their homes," said Heavner.

The amendment came after fierce opposition from a coalition of more than 100 environmental, clean energy, and consumer advocacy groups. These organizations argued that breaking existing contracts would destroy consumer trust and undermine California's clean energy goals.

Senate Energy Committee Chair Josh Becker led the effort to remove the anti-solar language, following a detailed legal analysis highlighting the problems with forcing homeowners off their net metering contracts upon sale. The committee voted 9-4 to preserve existing net metering contracts, with senators rejecting the controversial provision that would have terminated these agreements upon property transfer.

The amendment also struck language that would have prevented solar customers from receiving cap-and-trade climate credits. Under California's cap-and-trade program, all utility customers—including those with solar—receive California Climate Credits twice a year on their electric bills as rebates from the state's greenhouse gas reduction efforts. 

The original AB 942 would have specifically excluded solar customers from receiving these credits that other utility customers get, essentially creating an additional financial penalty for choosing clean energy. By removing this provision, the Senate committee ensured that solar homeowners will continue to receive the same climate credits as all other utility customers.

“Senator Becker is respecting past investments while focusing on a future of innovation and energy affordability,” said Heavner. 

Under the original proposal, homeowners selling solar-equipped properties would have lost their favorable net metering rates, potentially increasing electricity bills by about $63 per month for new buyers, according to reporting from PV Magazine. This would have created a significant obstacle in real estate transactions and reduced property values.

Now, homeowners can sell their properties knowing that buyers will inherit the same net metering benefits, preserving both the financial value of their solar investment and their home's resale appeal. This protection extends to systems installed under California’s former net energy metering programs—NEM 1.0 and NEM 2.0—which offer significantly better compensation rates than the current NEM 3.0 program.

The amendment represents a huge win for consumer protection at a time when policy uncertainty already threatens the residential solar market. By maintaining contract integrity, California reinforces trust between homeowners and the state's clean energy commitments.