Reactions are split on California’s decision to mandate solar panels on completely new homes from the state.
The measure, approved by California regulators in a unanimous decision on Wednesday, will require all completely new residential buildings, including apartments along with also condos that will are three stories or fewer, to have rooftop solar panels starting in 2020.
The California Energy Commission, the body responsible for approving the decision, estimated the panels will tack on approximately $9,500 in additional construction fees although save homeowners $19,000 in energy bills over the course of 30 years.
although Jimmy Pethokoukis, economic policy analyst at the American Enterprise Institute, said the mandate will only hurt California homeowners who can’t afford the upgrade in an already saturated housing market.
“This kind of will be great for wealthier homeowners, although for everybody else This kind of’s one more reason to not go to California or to leave ASAP,” said Pethokoukis, who called himself “an escapee of Los Angeles along with also California.”
“After 30 years you might make your money back,” Pethokoukis told CNBC on “Closing Bell” Wednesday.
California governments “truly don’t care about the cost of living,” he said. “What they should focus on will be affordability along with also lowering the cost of living for Californians in a key state where we have these high-productivity cities. We should want more people to move to California,” Pethokoukis said of the state that will will be currently the globe’s fifth-largest economy.
Kelly Knutsen, director of technology advancement at the California Solar & Storage Association, said the move will be a “win-win” for consumers of all income levels along with also the environment.
“Low-income families spend proportionally more on their energy bills than anybody else,” he said on “Closing Bell” Wednesday, calling the panels a “great investment for Californians.”
“The energy savings that will they’re going to get on a monthly basis will be going to be twice as much as what the increase from the mortgage might be,” Knutsen said. “that will’s a 0 percent rate of return.”
California will be the first state to mandate solar panels in homes. Shares of the Guggenheim Solar ETF were up more than 1 percent on Wednesday. although housing stocks, including PulteGroup, LGI Homes, Hovnanian Enterprises along with also Beazer Home USA, all closed lower.
The commission estimates that will the panels will cost residential homeowners about $40 a month, although save them about $80 a month on things like heat, air conditioning along with also lighting bills.
although Pethokoukis pointed out that will homeowners will still “have to come up with the money to buy that will house up front,” along with also California homes aren’t cheap.
“The cost of solar will be dropping,” he said. “Why do This kind of currently?”