Installing a solar system and complying with other energy-efficiency measures required will add about $9,500 to the cost of a new home, according the the California Energy Commission. That would be offset by about $19,000 in expected energy and maintenance savings over 30 years, the commission estimates.
Solar Demand
While the policy is good for the solar industry, it may not move the needle that much.
The state adds about 80,000 new homes a year, and the California Solar & Storage Association estimates that about 15,000 include solar power. The Energy Commission estimates that the average home system uses 2.5 kilowatts to 4 kilowatts of panels, so the additional 65,000 new systems would add as much as 260 megawatts of annual demand in the state -- about the size of one large solar farm.
SunPower Corp. expects the rule will increase demand for residential solar in the state by about 50 percent. The San Jose, California-based company makes panels and develops solar systems ranging from rooftops to large, utility-scale power plants.
It’s unclear how much major solar installers like Sunrun Inc. and Vivint Solar Inc. will benefit, said Joe Osha, a San Francisco-based analyst at JMP Securities. They typically target existing homeowners rather than companies building new homes.
“Your initial reaction is: ‘oh, that’s great for the solar company,’” he said. “But their business is about acquiring individual customers. If you’re working with homebuilders, it’s a completely different thing.”
This article was provided by Bloomberg News.