New Rooftop Solar Laws in California Benefit Homeowners and Utilities

In the last week to sign bills, Gov. Jerry Brown signed AB 327 that allows utilities to charge all ratepayers for costs incurred to the grid by rooftop solar and allows those who have it to 'run the meter backwards', known as net metering.

2 minute read

October 10, 2013, 10:00 AM PDT

By Irvin Dawid


Chris Clarke explains the controversy behind AB 327. It allows utilities to charge a fixed fee of up to $10 "to recoup what they claim are costs unfairly incurred in providing rooftop solar customers backup power during times when their solar panels aren't producing power". The charge was opposed by those who saw it as regressive and unrelated to the power consumption of the household or presence of rooftop solar. However, as the governor noted in his signing message (PDF), it allows the Calif. Public Utility Commission to design new rates to give discounts to low-income households.

Solar owners will benefit with the removal of the state's net metering cap, currently "5 percent of each utility's average peak power demand", that will ensure new customers for the state's solar installation industry. Consequently the Solar Energy Industry Association "applaud(ed) Gov. Brown for his unwavering commitment to clean energy"

Under current arrangements, rooftop solar owners may not receive the full financial benefit of their system. AB 327 changes that billing system to the benefit of the homeowner.

Under net metering arrangements (also called Net Energy Metering, or NEM), rooftop solar owners can run their electric meters backward when their solar panels are feeding excess energy into the grid.

Brown also signed AB 217 that "extends two programs designed to help lower-income Californians go solar", one being for multi-family housing. Funding comes from "channel(ing) 10 percent of the California Solar Initiative's (CSI) funding toward helping California's poorest residents go solar.:

Under the programs, very low income households can get solarized with a subsidy paying all the costs. A sliding scale reduces the subsidy for people with more resources.

The CSI would have exhausted its funding in 2016. It will now be extended for another five years.

Monday, October 7, 2013 in KCET

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Adult holding hands of two children, all wearing winter coats, in crosswalk in New York City during holidays with trees decorated with lights in background.

Pedestrian Deaths Drop, Remain Twice as High as in 2009

Fatalities declined by 4 percent in 2024, but the U.S. is still nowhere close to ‘Vision Zero.’

30 minutes ago - Streetsblog USA

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine