Every three years, the California Energy Commission (CEC), which is responsible for developing the state’s energy efficiency standards, updates regulations for buildings in California. Changes made in 2019, which took effect January 1, 2020, bring some big changes in the requirements for new construction.
Most New Homes Must Have Solar Systems
California is the first state in the nation to require almost all newly built single- or multi-family homes with fewer than three stories to have rooftop solar systems. The size of the system required will depend on the building’s projected electrical usage.
Homes taller than three stories, or where the rooftop has less than 80 continuous square feet of unshaded space, are exempt from the new regulations.
Homebuilders can either buy or lease solar panels to meet the requirements.
The new law also theoretically allows homebuilders to participate in state-approved community-shared solar systems to meet the requirements, but as of this writing, the state’s energy commission has not yet approved any proposals.
Gas Appliance Bans in Some Areas
The CEC also now allows local governments to limit natural gas use in buildings constructed after January 1, 2020.
Several areas, including Marin County, Berkeley, Menlo Park, San Jose and San Mateo, have recently enacted new restrictions on gas appliances that have taken effect alongside state regulations.
Berkeley’s regulations are the most stringent, with an outright ban on gas hookups in all new construction.
Menlo Park requires electric space- and water-heating but permits gas stoves and fireplaces for cooking.
New regulations for Marin, San Jose and San Mateo are more complex, allowing for some natural gas use, but require buildings using gas to meet higher energy efficiency standards than all-electric buildings.
Additional cities, including Santa Rosa, have proposed enacting limits on natural gas use in new construction and are awaiting CEC approval.
Energy Efficiency Costs & Savings Estimates
The CEC estimates that the new energy efficiency requirements will increase the cost of building a new home by about $9,500 but will save homeowners around $80 per month in energy bills. Over 30 years, CEC notes, this totals about $19,000 in savings.
Some developers have objected to the new regulations based on increased costs. Several lawsuits, including one filed by Windsor-based developer Bill Gallaher to halt Santa Rosa’s gas ban, are making their way through the courts and could jeopardize cities’ ability to enact new energy efficiency regulations.
Proponents of the regulations say that the need to reduce the state’s dependence on fossil fuels and reduce its impact on climate change outweighs the up-front costs.
The CEC estimates that homes built under the new solar mandate will use about 53 percent less energy than homes built using 2016 energy standards, reducing greenhouse gas emissions by 700,000 metric tons over three years.
Whether you agree with the new regulations or not, the solar requirement is here to stay, and more and more cities are considering restricting gas appliances for new construction, so if you’re considering building a new home, talk to your architect or contractor about how the new laws might affect your project.