The bill
What AB 942 proposed
AB 942 was California legislation that proposed ending NEM 2.0 grandfathering early \u2014 before the 20-year term ran out \u2014 and, in an earlier draft, ending the transfer of grandfathering when a home was sold.
Current status
AB 942 is not law (August 2026)
As of August 2026, AB 942 has not passed. The provision that would have ended grandfathering transfer on home sale was removed in 2025. Existing 20-year NEM 2.0 grandfathering terms are intact.
If you have an NEM 2.0 system, your grandfathering is not in danger from AB 942 today. The risk was real while the bill advanced, which is why it generated alarm \u2014 but the current state is that grandfathering continues as the CPUC set it.
What changed
What AB 942 would have changed
- Ended NEM 2.0 grandfathering early, before the 20-year term completed.
- (Earlier draft) Ended transfer of grandfathering when a home was sold.
Both provisions are either removed or unenacted. The home-sale transfer rule was stripped in 2025 after pushback from solar owners and the real estate market.
What actually matters
The deadline that is real
The date to track is December 31, 2027 \u2014 the place-in-service deadline for the federal Section 48E Clean Electricity Investment Credit (a commercial incentive), not the state NEM bill. Do not confuse the two.
For NEM 2.0 specifically, the only deadline that already passed was April 15, 2026 \u2014 the final PTO date to lock in NEM 2.0. New enrollment is closed. See the pillar guide for the full timeline.