FOR IMMEDIATE RELEASE
Date: May 9, 2025
Contact: info@fixthecostshift.org
REPORT: Amended AB 942 Would Provide $3.6 Billion in Savings for Californians
Passing the Utilities & Energy Committee, the amended AB 942 would reduce 10 million Calfiornians’ electricity bills by $423 million next year and $3.6 billion over the next two decades
SACRAMENTO – Last week, the California State Assembly Committee on Utilities & Energy passed an amended AB 942, which would provide $3.6 billion in savings on the electric bills of 10 million Californians who don’t have rooftop solar.
An economic report shows how the amended legislation would achieve these savings:
When a property is sold, the new owner switches to the Net Billing Tariff (NBT) system that new rooftop solar customers are already subject to — resulting in an estimated rate relief of $203 million in 2026 and $2.5 billion from 2026 to 2043 for electric customers who don’t have rooftop solar.
Reallocating the California Climate Credit from solar customers to non-solar customers would result in an estimated rate relief of $220 million in 2026 and $1.1 billion from 2026 to 2030 for electric customers who don’t have rooftop solar.
Taken together, the amended AB 942 would deliver $423 million in savings next year alone and $3.6 billion over the next two decades for Californians’ electricity bills.
The outdated NEM system, which was first created in 1995, shifted $8.5 billion in extra costs to non-solar customers last year alone to pay for fixed energy grid costs that solar customers avoid paying. These subsidies benefit 1.6 million rooftop solar customers while over 10 million non-solar customers — many of whom are lower-income, renters, and disadvantaged communities — pay the difference.
“The solar cost shift is jacking up costs for millions of Californians, especially in communities where our small businesses operate, and it’s only going to get more expensive,” said Elizabeth Martinez, Board Member at the CA Hispanic & LA Latino Chambers of Commerce and VP at Meruelo Enterprises. “The amended AB 942 is a step in the right direction and will save Californians $3.6 billion on their electricity bills.”
Last week, members of the Fix the Cost Shift coalition — ratepayer advocates, business associations, and labor unions — participated in a press conference alongside Assemblymember Lisa Calderon to advocate for AB 942 and deliver billions in savings for California electricity customers.
For more information about Fix the Cost Shift and our coalition, visit FixtheCostShift.org or contact info@fixthecostshift.org.