Business & Tech

California To Require Solar Panels On New Homes Starting In 2020

The California Energy Commission unanimously voted for the panels, which will add to construction costs amid the affordable housing crisis.

MALIBU, CA – California will require that new homes include solar panels beginning in 2020, state officials announced Wednesday. The decision, cementing California's position as the leader in clean energy, was praised by the solar industry and has the potential to reshape the debate about the use of solar technology, TIME reported.

However, it will add thousands of dollars to the cost of homes amidst the statewide affordable housing crisis. That made the unanimous vote with little debate among the five-member California Energy Commission all the more surprising, according to The New York Times.

The new standards are set to add $25,000 to $30,000 to the construction costs, but the self-produced energy is estimated to save owners $50,000 to $60,000 in operating costs over the solar technology's expected 25-year lifespan, Engadget reported.

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

“This adoption of these standards represents a quantum leap,” Bob Raymer, senior engineer for the California Building Industry Association, said during the public comments before the vote. “You can bet every state will be watching to see what happens.”

The plan doesn't require that a home reach net-zero status, where the solar power completely offsets the energy consumed in a year, according to Engadget. But, California law requires at least half of the state's electricity to come from noncarbon-producing sources by 2030, New York Times reported. Solar power has increasingly become a driver in the state's alternative energy production growth.

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

An increase in residential solar concerns big utility companies whose business relies on building large infrastructure to carry electricity to consumers, TIME reported. These utility companies have argued that too many customers moving to alternative energy sources could threaten their business model, and their ability to provide reliable power, according to the magazine.

San Diego Gas and Electric said it hoped California would ensure that utilities can generate enough revenue to operate the electric grid, as the homeowners who can afford solar leave those who can't afford it to bear the brunt of the cost of running the electric system, The New York Times reported.

“It’s a growing problem,” Tim Carmichael, state agency relations manager for the utility, told the commission. “It’s hurting families that can’t afford solar. We continue to support solar growth. We want to ensure that program structure is appropriate.”

Utilities have spent lobbying dollars trying to kill policies that allow residential policies to survive, TIME reported. The commission members, however, saw their vote as advancing the missing of their future, according to The New York Times.

“I’m really happy to get this to the finish line,” Mr. McAllister told the newspaper. “One big step for mankind.”

Image via Shutterstock


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here