December 24, 2019 | By RGR Marketing Blog

Starting in 2020, All New Home Builds in CA Will Be Powered By Solar

Buy Solar LeadsIn 2018, the state of California became the first to require that all new homes being built should be powered by solar. On January 1, 2020, that mandate becomes active. But what will this mean for new homebuyers and the mortgage industry in the New Year?

Here’s everything we currently know and what to expect from CA’s solar mandate.

What Building Types Does the Solar Mandate Affect?

The new solar mandate will apply to “all residential buildings up to three stories high being built at the beginning of 2020 and beyond.” This includes single-family homes, condos, and apartments. However, there are some exceptions.

For example, in cases where the building is being built in a shaded area or in an area where electricity rates are lower than the cost of solar power, the build could be exempt from the mandate.

Does the Solar Mandate Require Homes to Have Rooftop Solar?

California’s solar mandate requires new homes to be powered by solar, but it doesn’t require it to be via rooftop solar panels. Homes can also be powered by offsite solar resources. For example, a developer has the option to provide power to multiple homes via a community solar system built by them or to have it contracted with a utility-owned solar farm.

How Will the Mandate Affect Construction Costs?

According to EnergySage, the average cost of a residential solar installation in California as of January 2019 was $17,760. However, officials estimate that the new mandate will make installing solar more affordable with the average home construction cost being increased by an estimated $10,000 to include solar. It is also important to note that the price is before any incentives or tax rebates.

California officials estimate the new solar mandate will save homeowners about $80 per month on their heating, cooling, and lighting bills (based on a 30-year mortgage).

How Will the Solar Mandate Affect CA’s Real Estate Market?

There is a hot debate as to how CA’s solar mandate will impact its real estate market. On one hand, proponents for the mandate tout the financial and environmental benefits of solar energy with the monthly cost savings helping homeowners afford their homes.

On the other side of the aisle, the mandate’s opponents believe that the increase in home construction costs will price a lot of buyers out of the market. They’re also concerned that the rising prices will only worsen the state’s housing crunch.

While there’s wild speculation on both sided, exactly how the new mandate will affect the state’s real estate market remains to be seen.

Get Validated CA Solar or Mortgage Leads From RGR Marketing

Whether you’re a solar company or a mortgage brokerage firm, you rely on quality leads to keep your business busy and profitable. At RGR Marketing, we provide our clients with validated leads that help their businesses grow. We’ve been a leader in the industry for over 20 years, and we can help your business obtain the leads it needs to keep its sales funnel full. Contact us today to learn more about our solar leads or mortgage leads and find out for yourself why so many companies trust our experience and results.

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