FOR IMMEDIATE RELEASE

Date: May 22, 2025

Statement from Fix the Cost Shift Coalition Concerning AB 942’s advancement through the Appropriations Committee

SACRAMENTO – The Fix the Cost Shift coalition, representing nearly 2 million workers, small businesses, and ratepayers, today issued the following statement concerning AB 942’s passing through the California Appropriations Committee yesterday.

“The passage of AB 942 through the Assembly Appropriations Committee marks an important step in making California’s clean energy transition more equitable and cost-effective for all. Continuing to allow outdated subsidies to be inherited indefinitely is unsustainable and places an undue financial strain on millions of Californians.

NEM subsidies shifted approximately $8.5 billion in costs from solar customers to non-solar customers in 2024 alone — amounting to more than 25% of the average non-solar household’s electric bill.

AB 942 addresses the inequitable shift by ending the automatic transfer of legacy NEM subsidies when solar-equipped homes are sold. New owners would move to the fairer Net Billing Tariff, which compensates solar production based on market value while reducing the burden on non-solar customers. The bill is projected to save $423 million in its first year alone, and up to $3.6 billion over the next two decades.

Clean energy should benefit everyone — not just those who can afford to install rooftop solar panels. AB 942 is a necessary reform to ensure that affordability, fairness, and sustainability go hand in hand.

It’s imperative that the California legislature pass this bill to fix the cost shift and lower energy bills for Californians.”

To learn more, visit FixtheCostShift.org or contact info@fixthecostshift.org