If you’re a solar panel owner in San Diego who’s been benefiting from earlier net energy metering (NEM) programs, Assembly Bill 942 (AB 942) could significantly affect your electricity savings in the coming years. Under this bill, starting July 1, 2026, homeowners who have been on NEM 1.0 or NEM 2.0 for more than 10 years will be required to transition to California’s new net billing tariff. This change essentially shortens the grandfathered period you were promised when you originally installed solar.
This matters because the older NEM programs offered more generous compensation for the excess electricity your system sends back to the grid; essentially crediting you at or near the retail rate. Under the new net billing structure, that exported power is credited at a much lower rate, tied to the utility’s avoided cost (usually closer to wholesale rates). For many solar owners, this shift will mean smaller utility bill reductions and longer payback periods, particularly if your solar setup doesn’t include battery storage.
Additionally, AB 942 removes important financial transition tools like the “glide path” and greenhouse gas reduction credits for those being forced to switch. These credits were designed to ease the financial hit of moving to the new system. Without them, many solar owners will experience a steeper drop in solar value—especially during daylight hours when your system overproduces and exports the most.
If you installed solar in good faith under NEM 1.0 or 2.0, this legislation may feel like a broken promise. It’s a reminder that energy policy in California is rapidly evolving—and not always in ways that favor early adopters. If you’re concerned, now might be a good time to speak with your installer or energy advisor about whether battery storage or load shifting can help you adjust to these changes and maximize your remaining solar benefits.
Contact your local legislators to tell them to vote “no” on AB 942 today through the Solar Rights Alliance.
