Novato, CA - Assemblymember Jared Huffman introduced legislation today that would require utilities to pay individuals for the excess solar and other forms of renewable energy they produce at their homes, small businesses or farms.  The idea was proposed by eight of his constituents who participated in the 2008 “Oughta Be a Law” contest.  Assembly Bill 1920 was unveiled at the location of California’s largest solar producer, SPG Solar in Novato.

“The legislative ideas that I received this year were truly remarkable,” said Huffman. “Not only did we have an outpouring of over 100 proposals, we had ideas that had true substance. I think the idea we chose creates strong benefits for both consumers and the environment.”

Specifically, the new legislation will enable residents who produce renewable energy for their homes, small businesses or farms to get paid by their utility company for any excess electricity they produce that goes back on the grid.  The bill is open to all renewable energy technologies that qualify for net metering such as solar, small wind, small scale geothermal, fuel cells, etc.  The level of compensation for the renewable energy producing customer would be determined by the Public Utilities Commission and would help the utility meet their renewable energy goals mandated by state law. 

Currently, a resident with solar panels on their home can reduce their utility bill to $0 – the electricity they produce beyond what they use goes back into the grid for free and they are not compensated. 

AB 1920 also removes the “size to load” restriction in state law that limits a person’s ability to install the maximum number of solar panels on their home.  Currently Californians can only install the amount of solar panels that equals their energy usage, even if they have extra room on their roof and they want to purchase additional solar panels.  

The bill would provide utilities with Renewable Portfolio Standard (RPS) credits for purchasing the renewable energy from their customers. 

In attendance at the unveiling of the legislation was Dan Thompson, SPG Solar founder and CEO, Bernadette Del Chiaro, Clean Energy Advocate with Environment CA, numerous renewable energy supporters and the winners of the 2008 “Oughta Be a Law” contest: Jared Babula – Sausalito, Peter Berkhout – San Rafael, George Davidson – Larkspur, Tom Faust – Corte Madera, Ray Gallian – Sonoma, Bruce Gustin – Petaluma, Steve Kunkel – Fairfax, Jim Lammers – San Anselmo.