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California becomes first state to require solar panels on new houses
Research - DECEMBER 12, 2018

California becomes first state to require solar panels on new houses

by Andrea Zander

The California Building Standards Commission unanimously upheld a May 9 decision by the California Energy Commission to change the state’s Green Building Standards Code to require solar panels on new homes up to three stories. The requirement goes into effect Jan. 1, 2020.

Builders must take one of two steps: incorporate solar panels in individual homes, or build a shared solar-power system serving a group of homes. It also includes incentives for people to add a high-capacity battery to their home’s electrical system.

California is a state known for its tight housing markets. Opponents of the measure said the addition of solar panels to new homes will increase the cost of new homes and reduce the number of new homes built.

Reports concluded the new requirement could add an estimated $8,000 to $12,000 to the cost of a home. Based on a 30-year mortgage, the Energy Commission estimates that the standards will add about $40 to the owner’s average monthly payment. However, the additional mortgage costs are expected to be more than offset by monthly savings of approximately $80 on heating, cooling and lighting bills.

The rule marks a new phase in California’s environmental policies. Currently, approximately 9 percent of single-family detached homes in California have solar panels, according to Reuters. In September 2018, the state established a goal of zero-emission energy sources for its electricity by the year 2045.

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