June 2018

REAL ESTATE:    Here comes solar….

California, blazing the way, will be the first state to require all new construction to have either solar electricity on every home, or have a power solar plant for the development. 

The new requirement is estimated to cost approximately $16,000 per home, or about $40 a month on a 30-year mortgage. The theory is that the homeowners’ lower electric bills will more than make up for the extra costs to install solar. 

The savings on the homeowner’s electric bill should be about $80 per month, depending on climate and use. The cost for solar could be included in the price of the home, or it could be leased on a monthly basis. 

California’s new mandate stems from a requirement that at least 50 percent of the state’s electricity needs to originate from non-carbon-producing sources by 2030. Solar residential power is a big step toward meeting that goal. In Southern California, with our sunny weather most of the year, and high costs of electricity, this may be a requirement that just makes sense. 

California’s new mandate starts in 2020, but expect to see solar installations on new construction before that deadline.