Act Now: Labor Cost Hike for Commercial Solar Looms with AB 2143
Side Step California's Prevailing Wage By Submitting Your Application Soon
Time is running out for businesses planning to go solar. With the enactment of California Assembly Bill 2143 (AB 2143) set for next year, the commercial solar landscape is about to change significantly. This new law mandates that any solar project accessing public funds or incentives will be classified as a public works project, requiring the payment of prevailing wages. If you’ve been considering solar for your business, now is the time to act to avoid potentially steep cost increases.
What Is AB 2143?
AB 2143 introduces new labor requirements for solar projects in California. Specifically, it applies prevailing wage standards to projects benefiting from public funding or programs, aligning them with existing public works projects. Prevailing wage laws ensure that workers are paid wages comparable to those in the area, often significantly higher than standard market rates. While this law aims to support fair wages, it also means higher costs for businesses investing in solar.
Key Exemptions to AB 2143
Not every solar project falls under the scope of AB 2143. Here are the notable exemptions:
- Residential projects under 15 kW
- Single-family homes
- Facilities serving modular homes, modular home communities, or multifamily housing developments under two stories.
- Projects already categorized as public works under existing laws.
If your project doesn’t meet these exemptions, you’ll need to factor in prevailing wage requirements starting next year.
What Does This Mean for Your Solar Project?
The financial implications of AB 2143 are significant. Prevailing wages for skilled labor, including journeymen and apprentices, often exceed typical market rates. In addition to increased labor costs, businesses will face new administrative burdens, such as maintaining detailed payroll records and submitting them electronically. Non-compliance could have severe repercussions, including ineligibility for net energy metering (NEM) services.
Why Acting Now Is Crucial
With AB 2143’s implementation date on January 1, 2024, fast approaching, businesses that delay their solar plans risk facing higher costs and extended timelines. Starting your project now allows you to:
- Lock in lower labor costs before prevailing wage requirements take effect
- Avoid the administrative complexities of complying with AB 2143
- Secure an interconnection application before the law impacts your bottom line
Partnering with the Right Contractor Matters
Navigating the complexities of AB 2143 requires expertise. Partnering with a trusted solar contractor like Green Convergence can make all the difference. Our team is fully equipped to handle compliance requirements and ensure your project moves forward smoothly and cost-effectively.
Don’t Wait—Take Action Today
The window to save on your commercial solar investment is closing fast. Avoid the potential cost increases and delays associated with AB2143 by acting now. Contact Green Convergence to discuss your solar project submit your interconnection application, and take control of your energy future before AB 2143 changes the game!
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