Assembly Bill (AB) 2143, enacted in 2022, mandates that large customer-sited renewable energy facilities, including solar and associated battery storage, must pay prevailing wages to construction workers and apprentices when enrolling in specific tariffs, starting January 1, 2024.

Contractors must maintain and submit certified payroll records to the California Public Utility Commission (CPUC) semi-annually. Violations may result in loss of access to net metering or net billing tariffs.

You can access more information about AB 2143 on the CPUC’s official website , including answers to frequently asked questions.

Exemptions
AB 2143 will not apply to projects that  fall under any of the following categories:

1. Residential facilities that will have a maximum generating capacity of 15 kilowatts or less of electricity, or that will be installed on a single-family home.
2. Projects that are already a public work under existing law. Find out  what qualifies a public works project.
3. Facilities that serve only a modular home, a modular home community, or multi-unit housing that has 2 or fewer stories.

The California Department of Industrial Relations (DIR) offers additional guidance on Prevailing Wage Determinations and Classifications.

Compliance
In order to comply with this law, contractors must submit trainee/employee payroll records that adhere to prevailing wage to the Solar-Utilities Reporting, Guidance, and Education (SURGE) Compliance Portal. GCAP Services (a CPUC contractor) will be collecting payroll records and ensuring compliance with AB 2143 on the Commission’s behalf.

To learn more about the AB 2143 compliance process from GCAP Services, read the notes from SOMAH’s February 2024 Public Forum or visit the SURGE website.  

If you have any questions on AB 2143 compliance, contact GCAP Services at info@cpucsurge.org.