Home buyers have been getting the worst of it lately.
During the covid frenzy, they had to pay unimaginable amounts OVER the list price just to buy a house. Then mortgage rates doubled, but they still had to pay the same prices! Then last year they had to start paying for their own realtor representation, and now this.
One of the first questions from those who attend an open house is,
“Does this house have solar?”
The strong preference is for there to be a newer solar system with battery that is pumping out at least as much electricity as needed – and it’s owned by the seller and easily transferred to the buyer.
It seems like about half of the systems are leased, which presents problems to the homebuyers. How much? How much longer? What are the pitfalls? Can I assume? Do I want to assume?!?
Whether the system is owned or leased, homebuyers will want to know about the net energy metering, or NEM. It’s because the original NEM1 was tweaked by NEM2. Here is SDG&E’s page:
https://www.sdge.com/solar/net-energy-metering
Hat tip to Peter for sending in this introductory article on AB 942 – an excerpt:
The bill AB 942, authored by Assemblywoman Lisa Calderon, proposes to slash energy credits for rooftop solar panels, limit the current program’s benefits to ten years instead of twenty, and cancel solar contracts if a home is sold.
Calderon said her legislation aims to address the financial imbalance faced by non-solar customers. “Last year alone, non-solar customers paid 8.5 billion dollars to subsidize the rooftop solar customers,” she said.
“That’s roughly one-fourth of non-solar customers’ electricity bill. It’s making electricity unaffordable for millions of Californians. Those who cannot afford solar are paying the most.”
However, opponents argue that AB 942 would undermine existing agreements with solar users.
The AB 942 was approved in committee on Wednesday. If it becomes law, homebuyers get one more stinger – no solar credits!
Listing agents need to be proactive and enumerate the existing and inheritable energy contract terms. My eldest up north had this issue for the last property purchase with rooftop. Own, lease, contracts all vague. (Get good help.)
That said, the State is once again going full on Darth Vader and changing the terms. Pray they do not alter them again.
I predict the rich will transition to never connecting to the grid as they build their exclusive compounds. It is clear the future involves connection charges.
It’s ironic that on one hand the State mandated as of 2020 that all new homes, including single-family and multi-family residences up to three stories, to have solar systems installed. This mandate aims to increase the use of renewable energy and reduce greenhouse gas emissions.
Yet on the other hand, a former lobbyist for Southern California Edison, Assemblymember Lisa Calderon (D-Whittier), her bill, AB-942, is payback to So. Cal. Edison, while harming families that installed solar, either purposefully or through the state mandate on new homes.
Something smells rotten in Denmark!
We’ve already reached out to our elected reps asking them to oppose AB-942