CHANGES TO SOLAR CREDITS
⚡ California AB 942: What You Need to Know About the New Solar Credit Changes
By Alejandra M. R. | Founder, Properties Unlocked
If you’re buying or selling property in California—especially a home with rooftop solar panels—Assembly Bill 942 (AB 942) introduces a major shift you need to understand. This bill affects how electrical utilities compensate homeowners who generate their own power and has significant implications for both real estate transactions and solar investment strategies.
🔑 Key Takeaway: Net Metering Just Changed
Under AB 942, homes with rooftop solar systems will now automatically switch to Net Energy Metering (NEM) 3.0 when sold or transferred. While previous plans allowed homeowners to receive generous credits for excess electricity sent back to the grid, NEM 3.0 significantly reduces those benefits—making solar energy less financially advantageous over time.
💸 Impact on Homeowners
Homeowners who sell or transfer their solar-equipped property could see a monthly increase of roughly $63 in electricity bills. This shift in compensation could impact:
• Property values
• Buyer incentives
• Transaction timelines
• Disclosure requirements
In short: Solar no longer equals automatic savings unless the existing contract terms are verified during escrow.
🏛️ Industry Response
The California Solar and Storage Association (CALSSA) has openly criticized AB 942, citing broken contractual promises and discouragement of long-term solar investments. The concern is that this change could undermine homeowner trust and slow down California’s renewable energy progress.
🎯 Legislative Intent vs. Market Reality
Proponents of AB 942 argue it was created to lower energy rates across the board. However, critics claim the real intention is to protect utility profits, not consumers. The unintended consequence? More complexity in inheritance transfers, divorces, and rental property sales, and a chilling effect on solar adoption.
📝 Why This Matters to Real Estate Professionals
At Properties Unlocked, we believe in empowering buyers and sellers with transparent guidance—especially when navigating high-value transactions involving solar energy systems. AB 942 adds a new layer of due diligence:
• Verify all solar contracts and current NEM terms
• Disclose any existing energy agreements
• Educate clients early to avoid closing delays or disputes
Whether you’re marketing a green-certified ranch, an off-grid property, or a solar-upgraded estate, understanding AB 942 is now essential.
💬 Final Thought: Stay Informed. Stay Empowered.
If you’re buying, selling, or managing properties in California, especially in counties like Contra Costa, Alameda, or Marin—don’t let AB 942 catch you off guard. Reach out to us at Properties Unlocked for trusted guidance on navigating solar disclosures, escrow implications, and energy-efficient valuations.
📩 Contact us today to unlock clarity in your next solar-influenced property transaction.
🗝️ Unlock a property—unlock a new reality.
Sources: leginfo.legislature.ca.gov
