Solar Credits for Tenants: How California Renters Can Save

With the rising cost of living in California, many renters are searching for ways to reduce their monthly utility bills. Solar power credits are a growing opportunity for tenants, especially as state law encourages landlords to adopt renewable energy. If you're a California renter, understanding how these credits work and your rights can help you unlock meaningful savings while supporting a cleaner energy future.

How Solar Power Credits Work for Renters in California

Solar power credits allow tenants to benefit from solar energy installed at their apartment complex or rental property. Through California’s Virtual Net Metering (VNEM) program, landlords with multi-unit buildings can install a shared solar system and distribute electricity bill credits to their tenants.

• Virtual Net Metering (VNEM): Lets renters in multi-unit buildings receive a share of solar credits directly on their electricity bills.
• Each tenant’s credit is based on the portion of solar power allocated by the landlord.
• Credits reduce what tenants owe for electricity used from the local utility (like PG&E, SCE, or SDG&E).

Landlords aren't required to install solar, but when they do, tenants should receive clear information about how credits are shared.

How to Tell If You’re Receiving Solar Credits

• Check your monthly utility bill for "VNEM" or "solar allocation" sections.
• Ask your landlord or property manager if the building is enrolled in a VNEM program.

Your Rights as a California Renter Regarding Solar Credits

California law provides renters with protections regarding utilities and billing. If solar credits are provided, landlords must provide clear, written notice to tenants detailing how credits work, and whether any additional utility charges or changes in rent will occur.^[1]

• Solar credits must be distributed fairly among eligible tenants.
• Tenants cannot be charged extra fees for receiving solar credits without written disclosure and agreement.
• Utility charges related to solar cannot be hidden within your rent.

Relevant Forms and Where to Find Them

• Notice of Utility Allocation (Form): Used by landlords to disclose how utility (including solar) costs are divided among tenants. Landlords should provide this as part of your lease or when solar is added. See the official California Department of General Services Forms for templates and more.
• Complaint Form (CPUC): If you believe solar credits or billing are being mismanaged, you can file a complaint with the California Public Utilities Commission (CPUC).

If you are paying for utilities directly to your landlord, you have the right to request an itemized bill showing solar credits applied to your account.

How to Address Solar Credit or Utility Disputes

If you suspect errors in your solar credits or have concerns about your billing, here’s what you can do:

• Step 1: Ask your landlord, in writing, for a copy of the solar allocation and an itemized bill.
• Step 2: If the issue isn’t resolved, file a complaint with your local utility or with the CPUC.
• Step 3: For unresolved disputes involving billing or landlord-tenant disagreements, you can contact the California Department of Housing and Community Development (HCD) or file with your local small claims court.

The California Department of Housing and Community Development and the California Public Utilities Commission (CPUC) oversee these matters; both provide support to help renters resolve utility issues.

Tenancy Legislation That Protects Renters

Your rights to transparent utility billing, including solar credits, are protected under the California Civil Code Section 1940.9 and related laws covering utility services and tenant protections.^[2]

FAQ: Solar Credits and California Renters

1. If my building has solar panels, am I guaranteed to get a solar credit on my bill?
   No, landlords are not required to pass on solar credits, but if your building is enrolled in the VNEM program, you should receive a credit. Always confirm with your landlord and check your utility statement.
2. Can my landlord charge a monthly fee to "manage" my solar credits?
   Not without your clear, written agreement. Any such charges must be disclosed in your lease or a separate notice.
3. What should I do if my utility bill seems higher after solar was installed?
   Request a detailed breakdown from your landlord, and compare bills before and after installation. If discrepancies continue, file a complaint with the CPUC.
4. Where can I get help if I believe my landlord isn’t following the law?
   You can contact the California Department of Housing and Community Development (HCD) and the CPUC for assistance.
5. How can I see exactly how much solar energy I am using?
   Your utility bill should show solar allocations. If not, request written documentation from your landlord or property manager.

Key Takeaways for California Renters

• Solar credits can reduce electricity costs, but require transparent sharing by your landlord.
• Review all documents and bills for clarity about solar allocations and charges.
• Use official state resources for guidance and dispute resolution if needed.

Understanding your rights around solar credits will help you save money and avoid common billing pitfalls.

Need Help? Resources for Renters

• California Department of Housing and Community Development (HCD): Tenant resources, complaint info, and legal protections.
• California Public Utilities Commission (CPUC): File utility complaints, including billing and solar allocations.
• California Department of Real Estate: Information on tenant and landlord obligations.
• California Civil Code Section 1940.9: Full text of tenancy utility billing laws.

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1. Official source: California Civil Code Section 1940.9
2. Learn more at the California Department of Housing and Community Development Tenants' Rights page.

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