2020 New Build Mandate in Effect

California has always been the state leading the country towards a brighter, greener future. At the forefront of the nation’s green revolution, California constantly seeks new ways of innovating upon existing technologies to revolutionize society. Recently, solar panel installations have received renewed interest by the state, and are the subject of the California 2020 New Build Mandate guidelines. The new California Green Building Standards Code requires all newly built single residence homes to have solar panel installations. With home buying up in Orange County, San Diego County, and Riverside County, one has to wonder how these guidelines will affect Southern California residents?

Will The California 2020 New Build Mandate Save Money?

The answer is yes, the California 2020 New Build Mandate will. Newly built homes after Jan. 1 are required to have solar panel installations, while existing homes do not have to install solar panels. However, the California Energy Commission estimates that over a standard 30-year mortgage, a solar panel installation can save homeowners $19,000. Regardless of whether or not you are building a new home, solar panel installations are a sound investment to both save the environment and your money.

How Will The California 2020 New Build Mandate Affect Home Builders?

Home builders may be wary of the California 2020 New Build Mandate for new homes, however these new guidelines can help them just as much as home buyers. Home builders have the opportunity to form lasting business relationships with expert solar panel installation experts who can work closely with them on multiple projects, potentially driving down the cost of their bulk solar panel installation purchases. The California Building Industry Association estimates that solar panel installations will add $8,000 to $13,500 to the price of building new homes, making wholesale discounts of solar panel installations a great way to add surplus value to new homes. With home builders expected to absorb most of the cost of the California 2020 New Build Mandate, making connections with expert solar panel installation providers should be at the top of every home builder’s todo list.

Top Tier Home Energy: Ready For Change

At Top Tier Home Energy, we are more than ready to assist home builders in complying with the California 2020 New Build Mandate. When you need an expert solar panel installation provider for Orange County, San Diego County, Or Riverside County, look no further. We back all of our work with an industry-leading 25 year warranty. That’s nearly the entire length of a home mortgage, meaning that potential home buyers will feel confident in their new home’s solar panel installation. We’re excited to work with home builders in Orange County, San Diego County, and Riverside County as they strive to meet the exceptionally green goals set out in the by this ambitious new law.

Did you know that installing a home solar system is an economic decision that can potentially improve your family’s financial position?

Home solar not only can reduce or eliminate your electric bill, adding a photovoltaic (PV) solar system to a house is almost always a good real estate investment and may contribute to increasing home values by 3 to 4 percent. The combined benefit of higher resale value and lifetime energy savings makes solar a compelling financial investment.

One study by Lawrence Berkeley National Laboratory , which analyzed the sale of nearly 4,000 homes with solar in eight states,  determined that some buyers, particularly those in California, are willing to pay a premium of $12,000-$15,000 for a home with an average-sized, resident-owned solar array.1  That illustrates how important it is for buyers and sellers to familiarize themselves with how solar affects property values.

In states with a booming solar industry, such as California, which has a more mature solar real estate market, local real estate agents, lenders, and appraisers are more likely to understand the value of solar, and there are plenty of  comparable home sales that can guide accurate pricing decisions.

Other regions are still learning the benefits of solar. Renee Baker, a real estate agent in Las Cruces, New Mexico, said that about six years ago, many real estate professionals in the area did not understand how solar adds to the value of a house.

“The problem was that a lot of them didn’t know what they didn’t know,” Baker said.

But that has changed as more solar houses go on the market. The Solar Energy Industries Association (SEIA) reports that there are more than 1.5 million residential solar systems in the U.S. and that a new one is added roughly every 90 seconds. So, it follows that real estate professionals nationwide are beginning to gain experience with marketing the solar features of a house. They also have better tools and training to help them with solar real estate deals, including third-party groups that calculate the potential value of a solar system, currently and over its lifetime.

Top Tier Home Energy home solar systems are more powerful, more efficient and degrade at a slower rate  than conventional solar. As a result, SunPower systems generate up to 60 percent more energy over their first 25 years. If tools for measuring resale value base their assumptions on actual energy output and reliability, SunPower systems are well positioned to add additional value to your home. Moreover, SunPower has the strongest combined product and power warranty in solar. In a blog post by Savenia Labs, it was noted that there’s a relationship between comprehensive solar system warranties and higher resale values.

BEST WAY TO ASSESS SOLAR HOME VALUES

Real estate agent Baker said as local solar home markets mature, real estate agents are able to look up more comps. They are the best way to assess the value of any house, solar or otherwise.

Baker, who has handled about 16 solar home sales, said prospective home buyers have two major concerns: They want to make sure there’s  documentation that the installation was done properly (information that any reputable solar dealer will provide) and they want proof that the system is saving money on electric bills.

“So, if you’ve got that documentation, you can show that,” Baker said. “You can show what the electric bills look like, and that’s the proof in the pudding.”

Using this “income approach” is recommended by the recent SEIA report, “How Owning a Solar System Impacts My Home Value: A Guide to Valuing Residential Solar Energy Systems.”

It spells out the various methods for assessing the value of solar homes and explains why the income approach provides the most accurate view for prospective buyers.

The report also provides several resources, including solar calculators, and lists organizations that can help solar homeowners. It will be updated periodically with additional tools as the U.S. solar market continues to grow and become a more integral part of the country’s real estate landscape.

Contact Top Tier Home Energy or call us at (949) 296-2296.

1  Source: Hoen, B., Adomatis, S., Jackson, T., Graff-Zivin, J., Thayer, M., Klise, G., &amp Wiser, R. (2015). Selling Into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes. Based on analysis of home sales with &amp without solar energy systems in CA, CT, FL, MA, MD, NC, NY and PA from 1999 to 2013.  Actual impact on home values will vary.

This post originally appeared on the SunPower Business Feed.

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