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California’s legislature has advanced a bill aimed at reversing recent state decisions that negatively impact the value of rooftop solar for renters in multifamily housing, farms, and schools. This comes amidst numerous cuts to solar incentives, including reductions in the valuation and crediting of exported solar generation, cuts to the emerging community solar program, and the imposition of a monthly fixed charge that diminishes potential savings from rooftop solar.
The decision in question imposes strict limits on the self-consumption of electricity produced by rooftop solar in multi-meter properties. This policy mandates that customers first sell their solar production to the utility at lower rates and then repurchase it at higher rates.
“It would force customers in multi-meter properties—such as renters, small farmers, schools, and colleges—to sell all of their generation to the utility at low rates and buy it back at full retail rates,” stated the California Solar and Storage Association (CALSSA).
California’s Virtual Net Metering and Net Energy Metering Aggregation programs currently enable properties with multiple meters to install a single solar array, allowing shared electricity and net metering credits across all meters on the property. The new decision, however, would compel multi-meter properties to sell solar to the grid at a low “avoided cost” rate and then repurchase it at full retail rate, even if the electricity generated is used directly by the property, such as a school.
Senate Bill 1374, sponsored by Senator Josh Becker, seeks to overturn this decision. The bill recently passed the Senate with a 28-7 vote and now awaits approval from Governor Gavin Newsom.
“SB 1374 removes a burdensome barrier and restores the ability for customers to self-consume the energy they produce on their property,” Becker said. “This bill is simply a matter of fairness. Multiple-metered customers should get the same treatment as everyone else — not have to sell their power to the utility at low prices and immediately buy it back at much higher retail prices.”
The state’s three investor-owned utilities—PG&E, SCE, and SDG&E—oppose the bill. They argue that Becker’s bill subsidizes solar for all non-residential customers, not just schools. In a joint statement, they claimed the bill “is likely to trigger grid upgrades, which results in high costs for all, but benefits only a few customers.” However, analysis from the California Public Utilities Commission (CPUC) has determined that non-residential solar programs have not caused a cost shift.
Supporters of Senate Bill 1374 assert that it would help schools manage the electricity affordability crisis. Oakland Public Schools, for instance, saw their utility bill increase by $1.5 million over the last year.
“Public schools have one general fund that everything comes out of: teachers’ salaries, textbooks, mental health counselors, utility bills—it all comes out of the same bucket,” said Sam Davis, Oakland Unified School District board president. “In previous years, we used solar energy to offset these rising costs and invest the savings in programs that improve educational equity. Restoring and protecting these incentives is critical to ensuring all students receive the education they need to thrive.”
According to Generation 180, nearly 2,500 schools in California have installed solar. The passage of Senate Bill 1374 could ensure that these schools continue to benefit from their solar investments, alleviating financial pressures and supporting educational programs. |
