Gov. Jerry Brown has signed a bill allowing for California solar power producers to engage in unlimited net metering (the dialing back of electricity meters to account for power provided to the grid). Before, net metering was limited to 5% of a utility's peak load.
The bill also guarantees that customers buying panels before July '17 will be able to sell power at favorable rates for the lifetime of their panels.
Needham's Y. Edwin Mok considers the bill a positive for SolarCity (SCTY +1.4%), which closed higher on a rough day for tech. Mok points out the bill eliminates net metering risk in the largest rooftop solar market in the U.S., and paves the way for other states to enact similar bills. However, he reiterates a Hold on the company due to its valuation.