Solar Energy in California: What to Expect in 2019

Renewable energy is predicted to be the source of much conversation in 2019, especially in California, with some experts projecting a wholesale move to solar energy in the State within the next few years. 

California currently has the largest solar market in the nation. To date, more than $42 billion has been invested in solar power in the State, and according to one source, approximately 16 percent of the State’s energy comes from solar. More than 14,000 megawatts of solar energy is expected to be installed in California homes throughout the next five years.

Earlier this year, the California Energy Commission voted unanimously to require all newly constructed homes to be equipped with solar panels starting in 2020. As of right now, this will make California the first state in the nation to require all new builds to be solar-powered. Developers are currently tasked with figuring out how to comply with this mandate while keeping homes affordable.

The Benefits of Going Solar

Reducing Costs over Time

Throughout the last five years, the cost of fitting homes with solar panels has dropped. Residents of solar-powered homes pay, on average, only eight cents per kilowatt of power. This is significantly cheaper than traditional energy sources where the cost is more than 19 cents per kilowatt, a number that is expected to more than double. 

The cumulative reduction in cost is incentivizing homeowners to move to solar power. Some experts project that a California homeowner can expect to save, on average, about $35,000 throughout the life of a solar energy system in a home.

Promoting Economic Health

In California in particular, a move to solar energy will benefit the economy. There are currently more than 2,000 solar energy companies in California, generating more than 80,000 jobs. With a wholesale move to solar by 2020, the State can expect a tremendous increase in job opportunities statewide.

The Challenges of Going Solar

Increased Upfront Costs

Although a move to solar energy will save homeowners money over time, it will add about $8,400 to upfront costs per single-family home. These upfront costs could price hundreds of Californians out of the housing market. 

A study from the National Association of Home Builders reports that for every $1,000 increase in upfront home construction costs, more than 50,000 homeowners will be priced out of the housing market. Carrying that same logic forward, an $8,400 increase will keep about 1.28 million families from purchasing a new home. 

Trends to Watch 

California and other states face a steep challenge in finding ways to build less expensive, solar-powered homes without losing their profitable target clientele. A possible solution in California, in particular, is that the 2020 mandate allows for “community-shared solar options,” which would take the form of off-site solar farms that send energy to multiple housing communities via transmission lines. This would require a substantial amount of infrastructure and strategic planning, as well as a surplus of land for solar farms, but could enable lower-income citizens to afford solar energy. 

Harmony Communities will closely follow this important issue in the coming months and throughout 2019.

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At Harmony Communities, we feel strongly that each resident has a sense of home. That they come home from work and feel pride in their environment and in their place in the greater community. That families are comfortable raising children in our neighborhoods, and that couples and singles know that they belong to something bigger than their four walls. In other words, we seek to create harmony within each community, making our communities not just passable, but peaceful, safe, functional, and beautiful.