California's first-in-the-nation requirement that all new homes have solar panels is a giant leap toward its goal of a fossil-free future, but the challenge of managing a surge of electricity to the grid could keep other states — even sun-soaked ones — from following suit.
Opposition from utilities and homebuilders, and a slower return on investment, also could stall similar efforts in other states.
With 80,000 houses built in California each year, the mandate that takes effect in 2020 will more than double the amount of solar energy produced in the state by 2025, the state said. California hopes to have 100 percent of its electricity come from carbon emission-free sources by 2045.
But energy experts, even those supportive of renewable energy, say the move could create difficulties for the state's electric grid as more residents contribute energy to the grid by selling their excess solar power. Utilities will have to manage that increase in energy production to keep it from overwhelming the system.
"Yes, all that solar going on the grid in the middle of the day is undeniably a challenge," said K Kaufmann of Fluence, an energy storage company. "However, there are a range of potential solutions and more will be developed. This is going to spark a lot of innovation."
Cloudy states may not be tempted to follow California's lead, but other sunny states, particularly those with ambitious clean energy goals, will be watching to see how its utilities adapt. A few cities in California have within the past few years implemented requirements that all new homes have solar panels, as has the town of South Miami in Florida, but this is the first time a mandate will be rolled out on such a large scale.
"We should recognize this as a pretty historical decision," said Sean Gallagher, vice president of state affairs for the Solar Energy Industries Association. "This is a further step in solar going from what was a niche product a few years ago to becoming as common as the front door on a home."
The California Energy Commission, which voted unanimously to add the solar panel requirement to the state building code, said the cost-benefit analysis made it a straightforward decision. Though the measure on average will add about $8,400 to the cost of building a home, that is less than what owners will save on their electric bills.