Everything You Need to Know About California's New Solar Construction Mandate | {CalSolarInc}

California Governor Jerry Brown recently signed legislation that mandates all new homes have solar photovoltaic systems built into their roofs. This law, however, only applies to single-family homes and apartments built after January 1, 2020, so there's still time to plan around it if you're building or selling houses in the Golden State. Here's everything you need to know about California's new solar construction mandate and what it means for homeowners and real estate professionals.

The California new construction solar mandate, which will be enforced by 2020, is not a hard and fast rule. It only applies to new construction homes on sites where the zoning allows for solar power systems. Local agencies can request an exemption if they believe that it doesn't comply with their local ordinances or due to high costs. A few communities have already been granted exemptions, including Glendale and Burbank in Los Angeles County. There are some concerns about the solar requirement as it relates to air quality because of how electricity may shift from natural gas to coal plants; but as of now, there isn’t enough evidence linking this change in energy sources with any adverse health effects. 

California new construction solar mandate in the state must include solar panels on their rooftops or carports by 2020. There are, however, a few exceptions: 

1) projects that exceed 2,000 square feet and cost more than $2 million 

2) buildings with plans for net-zero energy production 

3) other homes that do not have space or inclination for installation. With these rules in place, developers will now be able to factor the savings from lower electric bills into the project’s financial return on investment.

The California Energy Commission estimates that it will save consumers around $5 billion annually from reduced electricity rates. The California new construction solar mandate is expected to help meet Gov. Jerry Brown’s goal of generating 50% of electricity from renewable sources by 2030. At this rate, the Golden State may achieve its ambitious goal a decade ahead of schedule. Critics fear that the measure could raise housing prices as well as result in fewer jobs for blue collar workers who would otherwise construct non-solar buildings. Despite these concerns, many residents still support the measure because they see it as a cleaner alternative to fossil fuels.

The California new construction solar mandate is going to require solar installation contractors and home builders in the state  to have at least 15% of new residential construction projects set up with rooftop solar. This makes it mandatory for companies and agencies that sell, install, and design solar power systems in the Golden State to make a certain amount of their work accessible through third-party power purchase agreements. This is an expansion on a previous law enacted by the state in 2008 requiring solar panels on the top 5% of all new buildings by 2020. It was found that this would not be enough, so in order to continue meeting renewable energy goals, they upped the ante and made this change. These goals are part of California’s statewide 2030 plan which has been designed with climate change in mind. As such, anyone who does not comply will be subject to fines between $100-$500 per day until they get their act together or apply for an exemption from enforcement.

With a solar PV system installed on your home, you can expect your electricity bills to decrease dramatically. If you install a 5-kW system on your home, for example, we found that you could reduce your electricity bill by an average of $150/month or $1,800/year. Those savings may increase over time as electric rates continue to climb and the federal tax credit continues through 2019. In some cases, homeowners have even reported saving close to $300-$400/month! Additionally, this initial investment pays off in 10 years and starts generating money after that point. Plus, with our SolarLease program, all homeowners are eligible for no upfront cost installation!

If you are still on the fence about getting solar panels, it is important to remember that this California new construction mandate is for new constructions only. This means that if you're considering putting solar panels on your roof or in your yard for any other reason, this legislation will not affect you. If you are thinking about buying a new home, talk with your realtor about whether the location has homes for sale with solar installed and is part of a net-metering program. Talk with your builder and architect before building so they can design the property to take advantage of renewable energy sources like sun and wind. And, lastly, know that now more than ever there are many different ways homeowners can go solar, from rooftop installations to community arrays.

Now that the standards have been updated, we're getting close to having an effective and enforceable solar mandate. Starting in 2020, all homes being built or substantially renovated in California will be required to include solar systems on their roofs. 

The California new construction solar mandate requires that 15% of all new residential rooftops in the state must include solar arrays by 2020. Additionally, by 2025, there will be a minimum requirement of 12.5% of residences with rooftop solar arrays or other types of solar installations. There are exceptions for homes with difficult-to-treat roofs, and those in certain parts of the state where space constraints make it difficult to install solar panels. There is also a zero net energy standard which requires all newly constructed residential buildings, as well as commercial buildings three stories tall or less, to produce more electricity than they consume each year.