On May 9th the California Energy Commission approved a proposal to require most new homes built after January 1st, 2020 will be required to have solar panels installed on them. The new regulations will undoubtedly be a boom for an industry that had a rough time in 2017, the first-year installations declined.
The new ruling piggy-backs on a 2013 requirement that all new homes be “solar-ready.” The solar-ready rule indicated that new homes be built with a certain amount of roof space so that a future homeowner had the option to add solar panels at a later date.
The most recent rule will no longer give homeowners or builders the option to forgo the upfront cost of solar panels, which some estimate will be high as $30,000 per home. The most persuasive arguments against the new rule are just that, the additional costs of the home. California is by most measures already in a housing crisis regarding costs; many believe this will only compound the problem.
But, that also leads to some excellent investment opportunities. The solar panel industry is going to see a massive, built-in installation base. In 2017 California saw over 53,000 single family homes built and most would agree that number needs to be higher in a state with an ever-growing population.
On a very conservative basis, that number will grow to 55,000 in 2020. It is currently estimated that only about 600,000 homes in California currently have solar panels. So, to think that number of easily more than double in a few years when all new homes are required to have solar power, it's clear the investment opportunity in solar is huge. And remember, this is just California we are talking about, other states such as Arizona and Florida, (parts of Miami already have) also could pass similar regulations.
So, how do you cash in on this opportunity? Continue reading "Now Is The Time To Believe In Solar Energy"
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