The standards still need approval from the California Building Standards Commission.
The policy mandates the regulatory authorities to formulate necessary standards and regulations for wind-solar hybrid systems.
California's move to require new homes in the state to have solar panels from 2020 will have a positive net impact on residential solar installations of almost 650 MW from 2020 through 2023.
Adding solar panels would boost construction costs by $9,500 for a single-family home but save owners about $19,000 in energy and other expenses over 30 years, the Energy Commission estimated.
"Under these new standards, buildings will perform better than ever, at the same time they contribute to a reliable grid", said Commissioner Andrew McAllister, who is the Energy Commission's lead on energy efficiency.
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GTM's analysis is based on the Commission's prediction that almost 75,000 new homes will be built across California in 2020 alone and could help the state overcome a recent period of sluggish residential solar growth. The price of solar has dropped dramatically in recent years.
In a state where climate change mitigation efforts are already squeezing the historic dominance of natural gas, the requirement seeks to cut energy use in new residential buildings by 50%.
Solar energy also makes the state less dependent on coal and other fossil fuels making it a cleaner energy source and making the state more self-sufficient.
But Republican legislative leaders argue Californians can not afford to pay any more for housing in what is already an extremely expensive market. Homes that are shaded by trees or taller buildings, as well as houses with roofs too small to accommodate a PV system, would be eligible for exceptions or alternatives to the mandate. Community-shared solar generation equipment will also be an option. Additionally, GTM's new analysis does not apply to multi-family housing units, although GTM typically excludes these from its residential solar forecasts anyway.
Placing three-kilowatt systems on the 90,000 homes expected to be constructed in 2020 would result in an additional 200 megawatts in power generating potential, Moody's analysts said. "Now, California is taking bold leadership again, recognizing that solar should be as commonplace as the front door that welcomes you home".