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AB 1104

Net energy metering: construction of renewable electrical generation facilities: public works project requirements.

2025-2026 Regular Session Introduced by Gail Pellerin

California law now requires publicly-funded renewable energy facilities to meet prevailing wage and apprenticeship standards applicable to traditional public works construction projects.

Chaptered by Secretary of State - Chapter 632, Statutes of 2025.
#netenergymetering #constructionofrenewableelectricalgenerationfacilities #publicworksprojectrequirements
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Bill Summary · AB 1104

Legislative bill overview

AB 1104 modifies California's net energy metering (NEM) program by requiring that renewable electrical generation facilities constructed as public works projects must comply with prevailing wage and apprenticeship requirements. The bill ensures that solar installations and other renewable energy projects funded with public money follow the same labor standards as traditional public works construction.

Why is this important

Public works projects represent a significant portion of California's renewable energy investment, particularly through schools, municipalities, and government agencies. This law establishes consistent labor standards across the renewable energy sector, protecting worker wages and training opportunities while potentially increasing project costs. It addresses concerns that renewable energy projects could undercut prevailing wage standards if classified differently than traditional construction.

Potential points of contention

  • Cost implications: Prevailing wage requirements typically increase project costs by 20-50%, which could slow renewable energy adoption or reduce the number of projects publicly funded entities can afford
  • Definitional ambiguity: Unclear boundaries between what qualifies as a "public works project" versus private renewable installations may create compliance uncertainty and potential litigation
  • Competitive disadvantage: Public renewable projects may become more expensive than private alternatives, potentially shifting investment away from public sector solar installations toward private development

Compiled from official sources — confirm details with the bill’s official record.

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