The California State Senate Energy Utilities, & Communications (EU&C) Committee this week voted 9-1 to pass AB 560, a bill that would raise the state's net energy metering cap. The bill would double the net metering program capacity to 5%.

Before passing the bill, the EU&C Committee amended AB 560 from a proposed 10% capacity cap. The bill now moves to the Senate Appropriations committee for review and, if passed, on to a vote in the full Senate.

Net metering is a simple billing arrangement that allows solar energy customers to get full retail value for the electricity their systems generate. Existing law requires California's major electric utilities to make net metering available to customers on a first-come-first-served basis until the total program capacity exceeds 2.5% of the utility's peak demand.

"Net metering is one of the most important tools we have for making sure solar customers get fair credit for the clean electricity they deliver to the grid. Raising the cap would preserve those consumer rights and allow the state's solar industry to continue generating jobs, economic opportunity, and clean electricity for years to come - that's a prospect that's good for all Californians. AB 560 cleared a key hurdle today in the EU&C Committee, and we hope to see the rest of their colleagues join in support of solar net metering as the bill moves to the Appropriations Committee and then full Senate,” said Adam Browning, executive director of Vote Solar.