California Becomes First State to Require Solar Panels on New Houses


California is requiring solar panels on all new houses. The regulation will go into place after Jan. 1, 2020 and is an important part of the state’s determined effects to cut greenhouse gas emissions.

But the new rule will drive up $8,000 to $12,000 cost of houses, according to the New York Times. It’s especially fraught in California where the median home values of a single-family home are nearly $565,000. The median home values of California have already been rising faster than the rest of the United States, and could get even worse with the new solar rule.

523 - California Becomes First State to Require Solar Panels on New Houses

(Source: citylab)

Thanks to the sun and friendly public policy, California is already the nation’s leader in solar energy application. The average predicted cost of a solar system is $9,500 to the single-family houses but result in about $19,000 in energy savings over a 30-year period. In the long run, the systems are planned to save the cost of buyers an average of $80 a month on their utility bills, like heat, air conditioning and lighting bills.

Solar is a clean energy source without burning anything and doesn’t pollute the air by releasing harmful gases like carbon dioxide, nitrogen oxide or sulphur oxide, which will largely reduce the environment damage. Solar energy also does not require any fuel to produce electricity and thus avoids the problem of transportation of fuel or storage of radioactive waste. In one word, it’s our treasure to conserve the planet for future generations.

Combined with news this year that solar panels from outside the U.S. are subject to a 30% tariff, and that could cause severe damage short-term gains. This may make the cost of using solar energy in homes more expensive in the future.

Read More: Flourishing Solar Panel Market Generates Business Opportunities

It’s not sure how much solar installers and solar equipment manufacturers will benefit from the new regulation. Some of the world’s largest solar-equipment manufacturers in Asia stand to gain in the long-run. Chinese solar manufacturer – JinkoSolar is looking for space and tax breaks to build a $54 million headquarters and manufacturing factory in Florida. California Gov. Jerry Brown has already been clearing a path to climate collaboration with Beijing. California, or at the very least, our low-tax neighbor, Nevada could be headed for a plant of its own.


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