What Is The California Solar Mandate
When Did The California Solar Mandate Start?
The California Solar Mandate is a law that requires all new homes to be built with solar panels. The mandate was actually put into motion in 2006 and has been updated several times since then, most recently in January of 2019. This blog post will give an overview of what the mandate entails and how it might affect you as a homeowner.
The California Solar Mandate (or Title 24) is California’s policy on building standards for residential housing. It states that as of January 2020, all new houses must include solar panels if they are located in certain areas; this includes any newly constructed house or one undergoing major renovation work. Caifornia is the first state to put this type of building code into effect. There are also some exceptions to this rule, which we'll get into below.
Who Started The California Solar Mandate?
The mandate was created by the California Energy Commission and will be enforced by the California Public Utilities Commission and local authorities. Houses that do not comply with the rule will be sanctioned immediately and will have to go through building inspections over and over again until they meet the requirements of the mandate.
Who Does The Mandate Effect?
Homeowners who already have solar panels installed are exempt from this rule, but they may still want to take advantage of this opportunity if they're interested in selling their house soon. It's also worth mentioning that the rule only applies to houses built after 2020, so if you're planning on building an addition or renovating, it'll be up to you whether you want to go for solar panels.
This law will affect homeowners in two ways; firstly it'll reduce their utility costs, and secondly it will allow them to recoup some of the costs by selling excess energy back to the grid. This mandate will make it easier for home buyers to get financing, because they won't need to worry about making their monthly payments on electricity bills. This will most likely lead to an increase in housing prices as well, since buyers can expect their monthly electricity costs to be lower. Secondly, the law will make it easier for homeowners to sell their house or refinance if they want to.
As of right now, this mandate is for residential buildings such as new single family homes only and not commercial buildings. However, the California Clean Energy Commission did vote on the matter of new commercial buildings, and it was approved that multi-family housing and new buildings would be required to have solar panel systems and solar battery storage by as early as the year 2023. It won't be long before you start seeing rooftop solar on businesses, grocery stores, schools and more buildings across the Golden State.
What are the advantages of the mandate?
The state of California is one of the biggest markets out there and this mandate will give solar panels a more positive image. Anyone who decides to go solar will be able to save a lot of money on their monthly electricity bill, and homeowners who install solar panels before 2022 can expect a 26% rebate on their federal taxes. This is all due to the Federal Solar Investment Credit, abbreviated as the ITC. This rebate was supposed to only last up until 2021 but was extended. Those that know the industry best aren't expecting another extension this year, however, and the percentage is likely to drop to 22% barring some sort of drastic change. From there, it is expected to continue to reduce at least every year.
How Much Does A Solar Installation Cost?
So, let's say you’re a homeowner looking to build a new house or renovate your existing one. How much would it cost to switch to solar energy? And what can you expect to save on your electricity bill once the new panels are installed?
The cost of going solar entirely depends on which state you live in and how many panels a professional decides to install. For a household with average energy usage, a major part of the cost as we mentioned will be offset by rebates and tax credits.
In California, the average cost of a residential solar installation is about $12,000 after you factor in the tax incentive. For most people, this is not a feasible amount to fork over all at once. That is why a majority of solar companies, including Coastl Solar Palmdale, offer solar for zero money down and have financing options available. You avoid heavy upfront costs and in some cases, monthly costs for your solar panel installations come out to be cheaper than your current electricity bill.
How Much Money Do Solar Panels Save?
With the warm and sunny climate of Palmdale and other parts of California, your solar panels will produce energy at a high rate year-round. This means that you will see huge savings on your electric bill and may be able to eliminate the cost completely with a proper setup. Unless you go completely off the grid, you are still going to receive a bill, but it is not uncommon to receive a bill for no charge. In many cases, your home may actually produce more power than what it needs, in which case this excess energy is sold back to the grid, and you are credited for it. This is called net metering and is another great incentive that residents of California are taking advantage of.
When you take into consideration that you can wipe out the high monthly costs of utility bills with a solar installation, you will see that solar panels will pay off themselves rather quickly. The latest research in California shows that the payback period for solar panels is typically around 5-7 years. From there, it is nothing but pure savings for you and your family. In fact, the average net savings over a 20 year period for Californians is a staggering $45,000-$60,000! Our state enjoys the highest savings in the country!
How Does Solar Help The Environment?
Of course, financial gain is not the only benefit you will see with solar energy. As many may know, solar is a renewable energy source as it produces electricity from the sun. By switching to solar power, you are doing your part in lowering greenhouse gas emissions which in turn fights against climate change. You can double down on your efforts if you have an electric vehicle and install a solar-powered car charging station. New energy-efficient technologies are finally becoming a reality, and we need them to continue fighting this climate crisis.
California's Road To Cleaner Energy
In conclusion, the 2020 solar mandate is a great way for homeowners to make an investment in their house and save money on their electric bills. For those with a new build or renovation plans, this is a perfect opportunity to take advantage of this cost-effective alternative energy source and do your part in sustaining our environment and fight the climate crisis.
If you have any questions about the new that's backed by Governor Gavin Newsom, or if you have any general questions about solar energy, you can always feel free to give us at Coastal Solar Palmdale a call. We are happy to assist you and lead you in the right direction. Here is to making California's electricity the cleanest in the United States of America!