California Becomes the First State in the US to Order solar Installation on New Homes

Solar Power

California state authorities have just sent a very clear message that solar power is moving beyond a luxury for the high end of the market to become a norm. The Golden State became the first state in the US to make it a requirement for new homes to have solar power installations. As part of the new regulations that have been adopted by the California Energy Commission, all new homes that will be constructed after January 1, 2020, will be required to have solar power installations. The incentive will serve as a boost on the solar power industry and is expected to create thousands of jobs that pay well and can’t be outsourced. However, the new development is also likely to inflate the cost of buying a new home that has been installed with solar power modules by over $10,000.

The shares of solar power installation companies hiked in the stock market after the announcement was made. On the other hand, real estate shares for homebuilders fell significantly. The incentive will now make solar power a necessity in California. This will underscore the belief that rooftop solar was a reserve for the wealthy homeowners who are attracted to green energy. California is the largest market for solar power installations in the United States. California has for a long time been the leader of the green energy incentive. The state has in the past started an economy-wide program that was meant to reduce greenhouse gas emissions significantly. The Golden State has also instituted progressive policies in the auto-manufacturing industry to set higher fuel efficiency standards for cars and other appliances that rely on fossil fuels.

Governor Jerry Brown has stuck to his plan of reducing carbon and greenhouse gas emissions in California by over 40% come 2030. California now acts as a benchmark for clean energy that other states can emulate. Energy Storage Initiative Chairperson, Morten Lund, says that the announcement was a significant announcement that had the potential of converting residential solar into an everyday appliance for the residents of California. Lund said that moving to green sources of energy was inevitable. However, Lund also said that the development was happening too fast in California that had been expected by most industry players and energy commentators. The biggest beneficiary of this move will be Sunrun Inc. This company is based in San Francisco and happens to be the largest residential solar installer in the United States.