You probably heard about the solar tariffs when they made headlines earlier this year. There’s a new update worth mentioning. The Protecting American Solar Jobs Act was submitted on April 18, 2018, by Congresswoman Jacky Rosen of Nevada.

Rosen and many others see the solar tariffs as damaging for the solar industry as a whole.

The bipartisan bill proposes reversing the 30 percent solar tariffs, which were approved by President Trump in January. It will also reimburse any companies who imported affected solar products under the tariffs for any financial damages incurred.

In accordance with the bill’s name, Rosen cited job creation among the main reasons for returning solar import prices back to their previous rates.

She highlighted the importance of the solar industry and its ability to create “new jobs, cheaper power bills, and the growth of a new industry that is diversifying our state’s economy.”

Rosen’s efforts were supported from both sides of the political aisle, with several Democratic and Republican representatives from California and South Carolina joining her as cosponsors. A sign of the economic viability of solar taking precedence over political leaning, the bill might be promising for further progress through collaboration.

Solar makes more sense than ever in terms of helping people provide for their families, both by developing more opportunities for employment and by offering an alternative to ever-rising utility rates.

Solar Jobs and Pricing for Homeowners

A Solar Foundation census released last year reported that 250,271 people were employed in solar jobs during 2017. With only 1.3 percent of the energy portfolio currently utilizing solar technology, potential room for growth in these new tech jobs is exponential.

The Solar Energy Industries Association (SEIA) projected the solar tariffs will reduce the number of solar industry jobs by a net of 23,000 in 2018.

Tariffs on solar module imports are affecting prices, though it looks to be more in commercial solar than residential. The stronger the solar industry is, the more deploy-able the technology, and the more reasonable the pricing becomes on a whole.

Will the Bill Make it Through?

In order to take effect, the Protecting American Solar Jobs Act will have to be approved by the House, the Senate and then it will return to president Trump’s desk again for his approval.

While it seems doubtful that President Trump will reverse his opinion on the matter, there’s always the possibility that a well-presented argument could land just right on the presidential desk.

The positive effects of the solar industry on local economies across the U.S. are far-reaching. If the argument can be made clear and any new numbers could be presented in a way to exemplify the value of eliminating the tariffs for solar employment, there’s a chance it could make it through. Either way, it’s a statement worth making.

For a bullet-point rundown on the history of solar tariffs, check out this solar tariffs fact sheet. Or read this article on the solar tariffs news about the solar tariffs and residential solar pricing.

California just took a major step forward in their renewable energy effort by becoming the first state in the US to require new homes and major residential installations to include solar panels.

These measures were adopted on Wednesday, May 9, by the California Energy Commission (CEC). The new rules are set to take effect in 2020 and are poised to be a “very bold and visionary step” towards California’s 2030 goal of generating 50% of their state energy from renewable sources.

An obvious benefit of these new rules is that it will result in significantly more residential solar panel installations in California.

California is already the leader in solar installations and is continuously setting the bar higher and higher for other states in the US. Hopefully, this will influence other states to follow suit.

On the other hand, this requirement would also make the cost of a new home or major home installment go up by $8,000-$12,000. Housing is already quite expensive in California, with the median home value at $537,315, so this measure would appear to not be helping with that issue.

There are many long-term benefits however, that come with owning a solar panel system, including significant energy cost savings over time.

To get a more accurate picture of the value that you can gain, you have to look at the pros and cons in detail.

Policy Details

The new rules regarding residential solar installations are part of California’s Building Energy Efficiency Standards, which are a set of standards that focus on electricity and natural gas conservation and renewable energy generation measures. The recent updates are focused only on new homes and major home renovations that occur on or after January 1, 2020, and is also only applicable to homes under 3 stories.

The size of the solar panel systems that must be added to these homes must be equal to or greater than the home’s annual electricity consumption. This is determined by a set equation within the code itself. According to the Solar Energy Industries Association (SEIA), the average size for all of California’s regions would be 3.38 kW.

Because the size of the solar panel system is dependent on the home, the exact amount that would be added to the cost of a home is also dependent on this. An official analysis determined that for a single-family residential home the required solar panel system would add $9,500 to the cost, which can be paid through increased mortgage payment.

All said and done, the California Energy Commission projects that this will add around $40 each month to a 30-year mortgage payment while saving an average of $80 on electricity expenses per month.

Long-Term Benefits

After a proper analysis, it is easy to see how the long-term savings from your solar panel system will outweigh its added cost to your home. Based on the CEC’s estimation of a net $40 in savings each month, the amount of savings would be $14,400. Other calculations show even greater savings, which can easily amount closer to $20,000.

If you are paying for the solar panel system upfront, then your net savings each month on electricity will be $80-$100.

Outside of the individual savings from a solar panel system, there will also be collective benefits to the state of California as a whole. The SEIA also found through their analysis that this new measure would lead to an additional 200 megawatts of solar installed in the state annually.

These new rules regarding solar installations are a way to normalize solar to the point where when an individual thinks about building a new home, a solar panel system will be just as normal as a bathroom or front door. Homeowners of existing homes without solar will also be more familiarized with solar when they see the systems on the new homes of their friends and colleague.

Solar Going Mainstream

Overall, what we are seeing here is yet another leap forward in bringing solar technology into the hands of the average consumer. As solar becomes more affordable each year and investments in solar continue to grow, we will likely see more measures like those adopted by states throughout the country.

California’s requirement for solar installations on new homes is a huge step in this direction. If you want to learn more about getting started on a solar project, check out what our Energy Advisors can do for you!