Net energy metering: eligible customer-generators: tariffs.

Assembly Member Calderon's net energy metering reform legislation phases out legacy solar subsidies for long-term participants while establishing new compensation structures for California's rooftop solar customers. The measure targets existing solar customers who have received net metering credits for 10 or more years, requiring them to transition to current tariff rates by July 2026.

Under the bill's provisions, affected solar customers must adopt the Public Utilities Commission's most recent tariff structure established after December 2022. These customers would no longer qualify for the "avoided cost calculator plus glide path" compensation mechanism and must pay the same non-bypassable charges as non-solar customers. The requirements also apply to new customers who purchase properties with existing solar installations after January 2026.

The legislation authorizes the Commission to develop alternative tariffs for impacted solar customers, provided the new rates reduce costs for non-solar ratepayers compared to previous arrangements. The measure additionally disqualifies solar customers from receiving credits related to California's greenhouse gas allowance program starting in 2026. According to data cited in the bill's findings, the current net metering framework has resulted in annual cost shifts of $8.5 billion to non-solar customers of the state's major utilities as of 2024.