Environmental and Consumer Coalition Urges Legislators to Reject Assembly Bill 942, Protect California’s Clean Energy Future

SACRAMENTO— A broad coalition of environmental, climate, clean energy, consumer and economic justice advocates are calling on California legislators to reject Assembly Bill 942, a proposal that threatens to undermine the state’s clean energy progress by making solar energy less affordable for millions of households. 

AB 942 would break approximately two million long-standing contracts with Californians who installed rooftop solar systems before April 2023. The state-mandated agreements guarantee compensation based on retail energy prices for 20 years. The 20-year agreement was designed to incentivize Californians to invest in clean energy solutions and has been instrumental in helping the state meet its ambitious clean energy goals. Breaking these contracts would punish early adopters of clean energy and discourage future investments in renewable technologies.

“Reneging on those contractual agreements would harm millions of people who answered California’s call to invest in clean energy as a way to reduce peak demand, stabilize rates and clean up the air,” said Laura Deehan, State Director at Environment California. 

The letter also highlights that utility companies’ excessive spending—not rooftop solar—is the primary driver of rising electricity rates. More than 90% of the rate hikes over the last decade were driven by increased utility spending. Over the past two decades, utility spending on poles and wires has increased by 300%, even as peak electricity demand has remained flat. By contrast, a recent study found that California’s two million rooftop solar customers saved all ratepayers $1.5 billion in 2024 alone by reducing the need for costly utility infrastructure upgrades.

“To address rising rates, California must focus on what’s really wrong with our energy system: uncontrolled utility spending and record utility profits,” said CALPIRG Director, Jenn Engstrom. “We’ll never control rates or meet our goals for clean, reliable energy if we don’t get at these roots of the problem.”  

The coalition warns that passing AB 942 would derail California’s efforts to combat climate change, reduce air pollution, and ensure energy reliability. Changing the terms of an agreement mid-stream would also gut consumer confidence and set a terrible precedent at a time when California needs more people investing in clean energy solutions.   

“AB 942 would increase rates, limit choice, derail the state’s clean energy progress, erode public trust in government and avoid the hard work of actually reforming our state’s utility industry,” the letter concludes. “This is a crossroads moment for California: if the state is truly serious about tackling both air pollution, energy reliability and electricity rates, it will focus on utility spending and stand with consumers who need more choice, clean air, and more affordable energy.”  

To date more than 100 organizations have signed the coalition letter. Together, they are urging legislators to reject AB 942 and protect California’s progress toward a cleaner, more affordable energy future.