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California officials consider slashing program that has provided American families $1.5 billion in savings: 'It completely erodes consumer confidence'

"Whatever agreements you have in place, you need to ride out to the finish line."

"Whatever agreements you have in place, you need to ride out to the finish line."

Photo Credit: Depositphotos.com

The state of California is considering ending a policy that has helped save residents $1.5 billion on their energy bills. 

What's happening?

According to EnergySage, the California legislature is debating AB 942, which would repeal net metering rules that grandfathered in houses that had installed solar panels previously. Net metering allowed homeowners with solar panels to put their excess energy back into the grid and receive credits for it, allowing them to save more money on their energy bills.

These policies have helped California become one of the home solar power leaders, and they saved homeowners an estimated $1.5 billion on their energy bills while providing further incentives for panels to be installed. 

The new policy would force people into what's known as a net billing tariff program, which substantially reduces the credit homeowners receive for their excess power. 

Why is this legislation important?

The new rules would remove a substantial incentive for consumers who want to get solar panels. 

"People made huge financial decisions to put solar on their roofs, with guaranteed paybacks because of these agreements," Jeremy Nicholson, CEO of California-based solar installer Sunergy, told EnergySage. "Changing that midstream would be a huge disservice. It completely erodes consumer confidence. Whatever agreements you have in place, you need to ride out to the finish line."

Watch now: Why eliminating the solar tax credit is bad for all of us

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Advocates for the bill cite rising energy bills and a need for everyone to pay their fair share.

While the new rules remove one incentive for solar ownership, installing solar panels on your home can still save you a ton of money and substantially reduce your carbon footprint. Renewable solar energy reduces our reliance on the fossil fuels that have contributed to rising global temperatures while also decreasing power bills.

If you want to get in on those savings, EnergySage can help. Their free tools can help you find a local, TCD-vetted installer and get you quotes quickly, and with their help, you can save up to $10,000 with incentives and tax credits on the installation of your panels. 

The Investment Tax Credit (ITC) can offer homeowners thousands of dollars in tax incentives, but it may not be available for much longer. Congress has threatened to eliminate these incentives, making it wise to act now to potentially save yourself thousands. If the ITC is eliminated, homeowners would need to finish their solar installations by the end of the year to still get the 30% tax credit.

Should the government continue to give tax incentives for energy-efficient home upgrades?

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EnergySage's free mapping tool shows you the average cost of a solar panel system on a state-by-state level, and it also breaks down the different incentives available in each state. Combining that with EnergySage's other tools, you can save big money and rest assured that you got the best deal possible on your new panels.

What's being done about this legislation?

AB 942 is still being discussed by the California State Assembly, so if you live in the state and want panel owners to continue to receive the benefits they got when they purchased their panels, you should call your legislator and tell them to vote against the bill. 

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