SACRAMENTO, Calif. – State legislators agreed to restore benefits for both schools and apartments that choose solar power.
In a major victory for California's clean energy future, a bill to restore key solar benefits for California schools and apartment buildings passed through the state Legislature today and is now headed to Governor Gavin Newsom's desk. SB 1374 (Becker) aims to close a loophole in the state’s solar rules that restricts schools, apartment buildings, and other multi-meter properties from using all of the solar energy they generate.
"I’m thrilled that the Legislature has approved SB 1374," said Senator Josh Becker, author of the bill. "This bill is simply a matter of fairness. Multiple-metered customers should get the same treatment as everyone else and not have to sell their power to the utility at low prices and immediately buy it back at much higher retail prices. Now, we call on Governor Newsom to sign this crucial legislation and reaffirm California's commitment to prioritizing equity in its clean energy transition."
This legislation comes at a critical time, as an overwhelming majority of California residents have endured a 50% increase in electricity bills in just three years – a spike that disproportionately impacts low-income households, who are more likely to be renters. By ensuring that solar incentives are aligned with the needs of apartment buildings and residential properties alike, SB 1374 not only helps address the immediate affordability crisis, but also supports a broader commitment to distributed energy generation, which helps offset needed investments in our grid, thus bringing rates down for everyone.
Since the beginning of 2024, solar installations on multifamily buildings dropped 94% . The state risks missing a critical opportunity to advance renewable energy and lower utility costs for renters, precisely when relief is most needed amid an exploding utility bill affordability crisis. SB 1374 will help address this issue by restoring incentives for solar installations on multifamily properties that were slashed last November by the California Public Utilities Commission.
Like millions of households across California, school districts statewide are also grappling with an affordability crisis. Oakland Unified School District's bills increased by $1.3 million this year alone, while Clovis Unified School District has faced $2.2 million in electricity hikes since 2019—costs that would have exceeded $5 million without the district's existing solar panels. With more funds funneled toward skyrocketing utility bills, school districts are having to cut staffing, materials, and resources critical for student learning.
"Energy costs are now the second-largest expenditure for schools, after staff salaries. Every dollar spent on energy is a dollar we don’t have for teachers, textbooks, and critical resources students need," said Stephanie Seidmon, Program Director at UndauntedK12 . "Before November’s rule change, solar energy provided a lifeline to schools struggling with high energy bills. It doesn’t make sense that schools now can’t use the energy they generate on their property with their solar equipment. By passing SB 1374, Governor Newsom can fix this problem and ensure taxpayer dollars meant for California’s students stay where they belong – in classrooms."
Advocates, educators, and clean energy supporters throughout California are now urging Governor Newsom to sign SB 1374 without delay. This legislation is a pivotal step forward in addressing affordability, advancing the state's clean energy transition, and boosting community resources to provide a quality education for all students.
About UndauntedK12
UndauntedK12 is a nonprofit organization with a mission to support America's K-12 public schools to make an equitable transition to zero carbon emissions while preparing youth to build a sustainable future in a rapidly changing climate.
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