New law mandates solar panels for California homes

On Wednesday, the California Energy Commission [CEC] in Sacramento voted 5-0 in favor of rules that will require solar panels on new homes, part of a wide-ranging campaign to reduce carbon gas emissions statewide.

Via press release, the CEC touted the energy-saving effects of the new law, which will kick in 19 months from now:

The building energy efficiency standards, which are the first in the nation to require solar, will reduce greenhouse gas emissions by an amount equivalent to taking 115,000 fossil fuel cars off the road. [...]

Under the new standards, nonresidential buildings will use about 30 percent less energy due mainly to lighting upgrades. For residential homeowners, based on a 30-year mortgage, the Energy Commission estimates that the standards will add about $40 to an average monthly payment, but save consumers $80 on monthly heating, cooling and lighting bills.

The statute also includes a few other minor new rules about energy efficiency for both residential and non-residential buildings. The legislation contends that “energy efficiency allows each unit of generated energy to go farther and do more,” cutting back demand and sparing the state’s electrical grid.

New solar standards will also drive up the cost of building a house by several thousand dollars, although early estimates about the precise figure vary significantly.

In an emailed statement to Curbed SF, Danielle Hale, an economist with the real estate aggregate site Realtor.com, had a glum assessment of the change:

“Among the markets reviewed in April, homes with solar panels tended to have a lower median price per square foot than homes without. [...] In a market where affordable new construction already lags demand, this mandate could exacerbate this imbalance by raising the price of low-density new construction.”

Courtesy Sunrun

However, it’s hard to decisively conclude whether solar power drove down the prices on those homes or if it’s merely statistical noise over one month.

The rule change could be a particular coup for companies like San Francisco-based Sunrun, which offers monthly leasing deals on solar power systems to homes that can’t afford to buy and install one themselves.

On Wednesday, Sunrun CEO Lynn Jurich was naturally upbeat about the news and praised the CEC in an emailed statement for “advancing clean energy solutions.”

Note that the solar standards will also have to pass the California Building Standards Commission before becoming official, but nobody seems to be anticipating any difficulty moving the law through that body too.

• New Building Standards Adopted [CEC]
• Notice of Proposed Standards Changes [CEC]
• Sunrun Solar Lease