🔍 What Is AB 942?
AB 942 updates how solar energy credits work, specifically targeting Net Energy Metering (NEM). The big headline? Upon the sale or transfer of a property, any existing solar system will automatically be enrolled into NEM 3.0—a program that pays homeowners less for the excess power they send back to the grid.
That’s right—say goodbye to the high returns from previous solar agreements. The new setup means lower compensation, and for most, an estimated $63/month increase in their electricity bills.
😬 What Does This Mean for Homeowners?
- Selling your home with solar just got trickier.
- Home values may be impacted, especially if buyers are hesitant to take on less favorable solar terms.
- Transfers due to inheritance, divorce, or rental situations will also trigger the switch to NEM 3.0.
🏘 Why Real Estate Professionals Should Pay Attention
This isn’t just a utility bill issue—it’s a title and escrow issue too. When solar is involved in a transaction:
- You must verify NEM contract details.
- Proper disclosure is critical to avoid disputes.
- Expect more questions from buyers—be ready to educate!
⚡ Industry Reactions
CALSSA (California Solar & Storage Association) isn’t thrilled. They’ve called this bill a breach of trust that undercuts California’s commitment to renewable energy. And they’re not wrong—this move might discourage future solar adoption, putting a dent in long-term sustainability goals.
📘 Why It Matters to You
Knowledge is power—and in this case, it’s literal. Whether you’re representing buyers or sellers, understanding AB 942 is essential to protect your clients (and your deals). This bill highlights how Title, Escrow, and Real Estate pros need to work hand-in-hand to manage these complexities.
➡️ Don’t let AB 942 catch you off guard. Know it. Share it. Be the expert your clients count on.