California becomes first state to order solar on new homes – bloomberg gas zombies

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The new policy applies to single-family houses and multifamily units that are three stories or less, and there are some exceptions for homes that are too shady. Homebuilders will probably try to pass on the costs to customers, Carl Reichardt, a San Francisco-based analyst for BTIG LLC, said in a phone interview before the vote.

Installing a solar system and complying with other energy-efficiency measures required will add about $9,500 to the cost of a new home, according the the California Energy Commission. That would be offset by about $19,000 in expected energy and maintenance savings over 30 years, the commission estimates. ‘Admirable But Misguided’

Bloomberg New Energy Finance analyst Colleen Regan described California’s decision as “admirable but misguided.” The standard isn’t the best way to curb the state’s greenhouse-gas emissions and could exacerbate the steep ramp-up in solar power production that California’s grid operator is already grappling with at midday.

“It’s also a policy that very clearly is picking winners, and California would be better off focusing its efforts on the real source of the problem — greenhouse gases — rather than favoring one zero-emissions technology over others,” Regan said.

Jurich said in an interview that the standard is an opportunity for Sunrun, which offers solar leasing. With no-money-down solar service agreements, there aren’t additional costs to a builder, she said. “We are well-positioned to serve that market.” Solar Demand

The state adds about 80,000 new homes a year, and the California Solar & Storage Association estimates that about 15,000 include solar power. The Energy Commission says that the average home system uses 2.5 kilowatts to 4 kilowatts of panels, so the additional 65,000 new systems would add as much as 260 megawatts of annual demand in the state — about the size of one large solar farm.

SunPower Corp. expects the rule will increase demand for residential solar in the state by about 50 percent. The San Jose, California-based company makes panels and develops solar systems ranging from rooftops to large, utility-scale power plants.

But those tariffs phase out after four years, and “if you’re being forced to install something that you may not want, you’re going to go the cheapest route,” said Hugh Bromley, a Bloomberg New Energy Finance analyst. “And that’s likely to be equipment imported from Asia.”

The new policy applies to single-family houses and multifamily units that are three stories or less, and there are some exceptions for homes that are too shady. Homebuilders will probably try to pass on the costs to customers, Carl Reichardt, a San Francisco-based analyst for BTIG LLC, said in a phone interview before the vote.

Installing a solar system and complying with other energy-efficiency measures required will add about $9,500 to the cost of a new home, according the the California Energy Commission. That would be offset by about $19,000 in expected energy and maintenance savings over 30 years, the commission estimates. ‘Admirable But Misguided’

Bloomberg New Energy Finance analyst Colleen Regan described California’s decision as “admirable but misguided.” The standard isn’t the best way to curb the state’s greenhouse-gas emissions and could exacerbate the steep ramp-up in solar power production that California’s grid operator is already grappling with at midday.

“It’s also a policy that very clearly is picking winners, and California would be better off focusing its efforts on the real source of the problem — greenhouse gases — rather than favoring one zero-emissions technology over others,” Regan said.

Jurich said in an interview that the standard is an opportunity for Sunrun, which offers solar leasing. With no-money-down solar service agreements, there aren’t additional costs to a builder, she said. “We are well-positioned to serve that market.” Solar Demand

The state adds about 80,000 new homes a year, and the California Solar & Storage Association estimates that about 15,000 include solar power. The Energy Commission says that the average home system uses 2.5 kilowatts to 4 kilowatts of panels, so the additional 65,000 new systems would add as much as 260 megawatts of annual demand in the state — about the size of one large solar farm.

SunPower Corp. expects the rule will increase demand for residential solar in the state by about 50 percent. The San Jose, California-based company makes panels and develops solar systems ranging from rooftops to large, utility-scale power plants.

But those tariffs phase out after four years, and “if you’re being forced to install something that you may not want, you’re going to go the cheapest route,” said Hugh Bromley, a Bloomberg New Energy Finance analyst. “And that’s likely to be equipment imported from Asia.”