Make the most of Mother Nature with the Title 24 solar mandate
California Title 24 regulates solar requirements for new buildings.
Under Title 24, solar panels (known as PV panels) are required for new home builds.
The 2023 update adds commercial buildings to the mandate.
There are a few cases that would eliminate the need for PV panels to be installed.
If you live in California, you may have heard a lot of chatter about renewable energy, Title 24, and solar panels. For most residents, this solar talk might not mean much to you unless you are building a new home or have recently moved into a newly built residence.
But if you are looking forward to building the home of your dreams, understanding the California Title 24 solar requirements and how they relate to you and solar energy is a big deal, and for good reason. Below, we dive into the basics of solar panels and how California’s mandates for their use can help power your home.
The California Energy Commission states that the Title 24 requirements are designed to “reduce wasteful, uneconomical, and unnecessary uses of energy for the state.” Title 24 requirements are updated every three years, providing California residents with guidance on the most energy-efficient technologies and new building construction guidelines. As an ultimate goal, these standards and practices help save energy, limit the need to build new power plants, and increase home electricity supply.
Effective 2020, California Title 24 requires newly constructed single-family homes and low-rise multifamily homes up to three stories high to have solar panels installed as an electricity source. Since these are new constructions, the project contractors, builders, and the local solar panel installers must use an estimate based on the plan’s floor space and climate to determine the amount of solar energy needed, as the solar panel system must be big enough to meet the annual electricity demand of the building.
There are a few limitations and exemptions to this mandate. In some cases, PV panels might not be required at all, and in others, smaller PV panels might need to be installed.
If the roof is not large enough to accommodate the number of PV panels needed, the requirement can be skipped or adjusted to allow smaller ones to be installed.
If a battery storage system is installed, the required solar panel sizes can be reduced by up to 25%.
If there is limited unshaded roof space because of structures or existing trees, no PV panels are required to be installed.
If the new building has access to a community solar system, installing PV panels on the building is unneeded.
The California Solar Mandate of 2023 expanded the requirement of PV panels to include them on new commercial buildings. This update targets medical offices, schools, grocery stores, restaurants, retailers, and hotels to have solar panels installed, making California even more eco-friendly.
While the term “mandate” can seem alarming, there is actually a benefit to homeowners who are either building a new home or are purchasing a newly built home with the PV panels installed. Solar energy from PV panels can reduce your monthly electricity bill. Although this provision of Title 24 may increase the up-front cost of a home, the cost is balanced out by longer-term savings.
Besides the money saved and tax credits available to you, using clean, renewable energy is good for the environment—who doesn’t want to help save the planet? Having solar panels installed on your home can also increase a home’s resale value, making a solid selling point for you in the future if you decide to sell.
A solar panel installation tax credit, called the Solar Energy Credit, can be claimed on federal income taxes. In order to qualify for the tax credit, the PV system must be installed during that tax year. This benefit does not act as a refund—it simply reduces the money you owe in taxes as a credit.
The amount you can receive as a credit depends on the year your PV system is installed. For systems installed between 2022 and 2032, you can claim 30% of your total solar installation costs on your federal taxes. For 2033, that decreases to 26%; in 2034, that drops to 22%. Unless renewed by the government, this tax credit will expire in 2035.
California was the first state in the US to mandate that new buildings be built with solar panels, but do all states have this same kind of requirement? Most states do not have solar mandates, but that doesn’t mean they aren’t trying to become eco-friendly. Those that join California in mandating harvesting the sun’s power include Hawaii, Vermont, and New Jersey.
Other states offer certain solar rebates and incentives for having PV panels. It’s best to check with your state’s energy company to see what incentives are available for your area. Some states that offer benefits for having solar panels include:
New York
Colorado
Connecticut
Texas
Florida
Pennsylvania
Although there is an up-front cost of around $27,200 to install solar panels, homeowners can find savings via their energy costs. With a lower electricity bill, rebates, and solar tax credits, you could find your solar panels paying for themselves within ten years.
Here are the ways you can save money with solar panels:
Electricity bill: Californians can enjoy an estimated monthly savings of $125 on their electric bill with a solar panel system.
Rebates: Depending on your utility company, you may be eligible for rebates, such as the Single-Family Solar Homes (DAC-SASH) program.
Solar energy credit: For systems installed between 2022 and 2032, you can claim 30% of your installation costs on your federal taxes.
According to the U.S. Energy Information Administration, the average U.S. home uses 900 kWh of electricity monthly. With a 7.15 kW solar array, a home can generate 965 kWh a month, which means solar panels can produce significant savings. The average solar owner saves about $34,500 over 25 years. Don’t forget to include rebates and the solar tax credit in your estimated savings. After paying off the up-front costs, you can enjoy the savings for the rest of the system’s life span.
Solar panels, called PV panels, are devices that collect sunlight and convert it into electricity. This electricity is used to power your home, saving you money on your electricity bill and producing clean, environmentally friendly energy.
The cost of solar panels is about $27,200 for the average homeowner but can vary significantly based on factors like the materials you use and the number of solar panels you need. On the lowest end, this project can cost $4,500, and for extravagant projects using many high-wattage panels, you could see your price tag hit $55,000 or more. As part of Title 24, homeowners do not need to front the entire cost of the PV panels during the build.
Solar panels can last up to 30 years, depending on the type of solar panel you have, making them well worth their investment. In most instances, homeowners can recoup their investment within ten years, with many earning it back within five years.
