Long recognized for its progressive policies regarding renewable energy, California has doubled down on rooftop solar. A new legislative mandate, which takes effect Jan. 1, 2020, requires almost all new homes be built with solar.
California, the largest solar market in the nation - with a legacy of being a bellwether state when it comes to charting future trends - is going all in. So, what does it mean to homeowners?
Publicly Confirms the Value of Solar
For more than a decade, Southern Californians have reaped the financial and environmental benefits of going solar. Our legislators took notice and through public policy are committed to sharing those benefits with the broader market. This will have a significant impact on adoption - not to mention creating strong tailwinds for new home sales.
Competitive Advantage When Selling
In the coming years, solar will be the norm on rooftops, giving homeowners a competitive advantage when selling. According to a study by Berkeley Labs, solar increases home resale value by $20,000 in California.
Now is the Best Time to Consider Going Solar
Given those two factors alone, the forecast for solar in California is sunny. The real opportunity for homeowners, however, is now. Here's why:
Lowest Rates in History
Despite rebate programs essentially going away, the price per watt of solar is currently the lowest in history. Enjoy it while it lasts. Prices will inevitably rise because of two primary reasons:
- The 30% Federal Tax Credit starts to decrease in 2020 and expires by 2022.
- Interest rates are forecasted to rise.
Supply and Demand Impact
With most new homes required to have solar in two years, there figures to be considerable stress on the supply of panels needed to meet market demand. Prices will rise, due to fundamental economics.
Tariffs on Solar Panels
Recently enacted tariffs on imported solar cells will drive installation prices up -particularly once companies have exhausted stockpiles of panels purchased prior to the new legislation. That window of opportunity, however, is closing fast.
Labor Costs for Installation
California's booming economy, while dropping unemployment rates to historically low levels, also brings with it higher prices for that newly employed labor. According to economists, those labor rates aren't forecasted to drop anytime soon, meaning a system installed today will cost less than one a year from now.
We know solar is a considered purchase - and it should be. Considerable time and effort go into the research necessary to ensure you get exactly what you want and what is right for your home - at the right price.
Considering the aforementioned incentives and summer fast approaching, we are confident in saying that there's never been a better time to go solar. Call SolarMax today and ask how you can do it for just $69/month - with us paying your first year's payments!
When you have a deal that good, you don't need a legislative mandate to act. It's just good, sound financial policy.