Updates continue to come in following the solar power mandates from May 2018. The California Energy Commission (CEC) requires that rooftop solar panels be installed on all new construction homes.
Under the 2025 energy code, a rooftop solar PV system is required for new residential single-family homes, duplexes, triplexes, and low-rise multi-family buildings up to three stories.
Building on previous solar requirements, the requirements for all new homes in 2025 include:
A rooftop solar PV system
Size must match expected electric usage
Battery storage incorporated
Enhanced energy efficiency standard compliance
The purpose is to ensure that all new homes built be Net Zero energy.
Translation: Home must produce more energy than they consume.
Why it matters: These mandates focus on cutting energy bills, reducing greenhouse gas emissions, and supporting California’s renewable energy goals.
What is the Solar Panel Mandate?
So, what does the green housing regulation do? In the hopes of slashing energy usage in new homes by 50 percent, the CEC requires that by 2020, all new construction, single-family homes – and multifamily homes under three stories – have installed upon completion.
By 2023, California’s Solar Mandate will also require all single-family homes to accommodate solar battery storage systems so they can be electric-ready and compatible. These changes will help ensure that homes have electricity during any power outage; solar panels won’t need to rely on an electrical grid to function. These changes will also reduce the grid’s reliance on fossil fuels, furthering California’s commitment to green energy.
Benefits of Solar Mandates
Energy independence
Increased positive environmental impact
Lower utility costs
What Does This Mean For New Construction Homes in California?
The green building mandate has many direct effects on housing in California. It impacts the overall affordability of new homes, the cost of living in the home, and the amount of energy consumed.
According to the CEC, this set of regulations is expected to have these financial and energy consumption impacts:
Add approximately $11,400 to the total cost of a new construction home (tax credits will reduce by 30%).
Raise monthly mortgage payments by about $60-$70.
Save homeowners between $34,000 to $120,000 in utility bills over the lifetime of solar panel system, not including repair costs.
Solar energy is the top source of electricity in the state providing 31% of California’s electricity.
Reduce 493 million pounds of carbon per year with less reliance on fossil fuels.
While proponents of these regulations point to the massive savings in utility bills over the lifetime of a home, many are apprehensive about the upfront cost tacked on to the price tag. In California, when you consider that the average cost of a home is close to $850,000, homebuilders feel the weight of these regulations bearing down on them. Factor in the cost of a mortgage and a home buyer’s down payment and you have a red-hot-button issue.
The solar panel and electric-ready mandates are another regulation in California’s quest to reduce energy consumption and become one of the greenest states in the US. If you plan on building a new home in California in the coming years, watch for more information on these developing green construction mandates. NewHomeSource will provide updates with additional developments as they become available.
Ultimately, these regulations should help homeowners save money over the lifetime of their homes. Another perk is that homeowners will have the pleasure of knowing they are helping maintain a healthy and green space.
Other California Resources
Best Suburbs Surrounding San Francisco Bay Area of California
Your Complete San Francisco, CA Relocation Guide
Your Complete Guide to Moving to Bakersfield, CA
Best Suburbs Surrounding Santa Barbara, California
Best Suburbs in Bakersfield, CA
Complete Guide to Moving to Santa Barbara, CA
10 Healthiest Cities in California
The Healthiest States to Live In
The 10 Best and Worst U.S. Cities for Allergies
Best Tiny Home Builders in California
Top 10 State Parks in California
The 10 Best Places to Live in California
How to Build a House in California
The Top 10 Most Affordable Cities in California
10 Best Places to Retire in California
Your Guide to Closing Costs in California
Top Master Planned Communities near Sacramento
Top Master Planned Communities near Riverside, California
Best Master Planned Communities in Los Angeles
Best Suburbs Surrounding Oakland, California
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Julie Gordey
A lifelong educator, Julie Gordey, is a retired school administrator. After years of focusing on education, this University of Texas graduate now travels and enjoys freelance writing for BDX and NewHomeSource.com.