California Assembly Bill 2143 – Prevailing Wage for Commercial Projects

Assembly Bill 2143 (AB2143), which will go into effect on Jan. 1, 2024, defines any solar project that accesses public funds or programs as a public works project.

This law will affect almost all commercial solar projects in California, as solar installations within the service area of an investor-owned utility (IOU) are typically interconnected through a net metering/billing agreement, selling excess solar-generated electricity back to the utility, which is considered accessing public funds.

There are a few exceptions to Assembly Bill 2143, including:

• Residential project with less than 15kW of solar power
• Single-family home
• Facility that serves only a modular home, a modular home community, or a multifamily housing development under two stories
• Project that’s already a public work under existing law

The largest impact of this bill will be a significant increase in labor costs on commercial solar projects because public works projects require all workers, including any journeyman and apprentices, to receive the prevailing wage.

In addition, being named a public works project will lead to more project complexity and administrative work for businesses and solar contractors.

Any solar contractor found to be willfully noncompliant with AB2143 regulations will not be able to receive service for their clients under net energy metering (NEM).

To avoid these challenges, TENCO SOLAR is strongly encouraging any commercial business that’s interested in installing solar to ensure their project is underway before the end of 2023.

Contact TENCO SOLAR today at 888-507-6937 to ensure your project gets underway before AB 2143 goes into effect.

In the meantime, to remain competitive in the marketplace, TENCO SOLAR is making the necessary adjustments to its business model to minimize the installation cost impacts of AB 2143 once it takes effect in 2024.