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Solar Power for New Homes and Its Impact on Mortgage

solar power for new homes

Solar Power for new homes in California will be mandatory beginning 2020.  That is barely two years from now as California starts its move to lower utility costs and support sustainable housing.  It is seen as a good move but one of the main concerns is that it could increase the cost of housing.

Housing affordability is already a big and pressing issue in California and with this, it might be more unaffordable.   According to reports the cost of buying a house might climb to as about $10,000.  California is the first state to approve such a mandate but other states might soon follow the lead.

Solar Power for New Homes Benefits vs Rising Cost of Housing

Citizens of California, as well as mortgage professionals, are divided on the issue of whether this is a good or bad move.  The estimated increase might even be higher because the one factor in might is a low-end installation.  What if your home requires a larger capacity for electricity and even requires a high-end solar installation?

California seems to be hell bent on making housing even more expensive.  Whether it is unwarranted optimism, a lack of understanding about how economics (especially when managed by government agencies) works, solar/green lobby pandering or a combination is unclear, but I’ll take wagers with anyone that this won’t work out like the press releases predict. – Kash Hatton,Healthcare Solution Architects Manager at Ricoh Americas Corporation

 

Not surprising. CA is its own worst enemy. This move will ultimately be counter-productive – watch as solar prices skyrocket under the “buy” mandate. Regardless, CA will continue to implement policies that keep consumer costs high in one of the most expensive states. Whether this will help air quality is dubious. Remember that many in CA must commute long distances on congested freeways (in gas-powered cars) just to get to work. I expect that trend to worsen as housing prices continue to rise. – Andy Ritenour, Materials Scientist, PhD

 

The increase is insignificant for what homes in California cost these days. New construction starts at a mint in today’s market as it is. Anything that makes the environment we live in better is a benefit. I would love to go off the grid. Just think during the next power outage, your neighborhood is the only one with electricity, that’s a win. – Janice Elliott-Howard, Owner at J.E-H

What do you think of Solar Power being Mandatory?

Let us hear your opinion on this mandatory solar power for new homes.  Do you think it is a move towards the right direction or is it just too early for such?  Would helping the environment be enough to compensate for higher cost of homes?

In any case, we at Home Mortgage Alliance Corporation (HMAC) will start enabling our partners to prepare for this change.  If you are someone who wants to establish your own lending division, you can also be one of our partners.  Just visit partner.homemac.com to know more about it and register.

Reference: #CaliforniaSolarLaw on LinkedIn

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