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Are Solar Panels Required on New Homes in California?

Yes. Most new homes in California must include solar panels. This rule started in 2020 and comes from the state’s Title 24 building code. It applies to new single-family homes and low-rise apartments up to three stories. The solar system must be big enough to meet the home’s expected energy use. Some homes may be exempt if the roof is too small, shaded, or if they join a community solar program. 

If you’re buying, building, or selling a home, here’s what you need to know.

What Is the California Solar Rule?

The California solar mandate is a rule that says most new homes must include solar power systems.

It started on January 1, 2020, as part of California’s Title 24 Building Code. This code sets rules for saving energy in new buildings.

The rule applies to:

  • New single-family homes
  • New multi-family homes up to three stories

The solar system must cover the home’s expected electricity use for the year. Its size depends on:

  • The home’s location and weather
  • How the home is built (windows, insulation, direction)
  • How much energy it’s expected to use

Infographic outlining California’s 2025 solar panel mandate for new homeowners, including Title 24 compliance, tax exemptions, and solar requirements for new single-family and multi-family homes.

Who Made This Rule?

The California Energy Commission (CEC) made this rule. Their goal is to:

  • Cut pollution
  • Use less fossil fuel
  • Help more people get clean, affordable energy

What Homes Must Follow It?

In 2025, the rule applies to:

  • All new single-family homes
  • Multi-family homes up to three stories

These homes must be solar-ready. That means they need the wiring and space to support solar panels. In many cases, they must also support:

  • Battery storage in the future
  • Electric car chargers

Infographic explaining California solar mandate exemptions, including shaded roofs, zoning restrictions, seasonal homes, and utility limitations, with an image of a shaded residential roof.

Are There Any Exceptions?

Yes. Some homes are exempt if:

  • The roof is too small or too shady
  • The home has zoning or utility issues
  • It’s a seasonal home without year-round electricity

Also, builders can sometimes use community solar instead of rooftop panels. These are shared solar farms that serve many homes through a subscription.

Do I Need a Battery?

No, batteries are not required, but they are a smart upgrade.

Adding a battery, like the Tesla Powerwall or Enphase IQ, can help you:

  • Store extra solar power for night use or blackouts
  • Shrink your required panel size by up to 25%
  • Save more money under California’s new billing plan, NEM 3.0
  • Stay powered during PSPS outages (wildfire-related blackouts)

Infographic highlighting the benefits of solar battery storage, including energy backup during outages, savings under NEM 3.0, and storing excess solar energy, featuring Tesla Powerwall units in a garage.

Quick Guide: Solar Rules for New Homes

Requirement Applies To Details
Solar Panel System New single-family and low-rise multi-family homes Must cover expected yearly electricity use
Title 24 Code All new buildings Must meet energy-saving standards
Battery Storage Optional Increases energy use and savings
Community Solar In some cases Shared solar systems replace rooftop panels
Property Tax Break Most solar systems Panels don’t raise property taxes until 2027

How Big Does the Solar System Need to Be?

System size depends on:

  • The home’s square footage
  • Your climate zone
  • How efficient the home is
  • Expected power use

Builders use tools like the Solar PV Calculator and Solar Assessment Tool to get the right size.

Veteran-owned Semper Solaris employee installs solar panels on a residential roof under clear California skies, showcasing expert craftsmanship and American-made equipment.

How Much Does It Cost?

Adding solar to a new home costs around $9,500.

But the average homeowner saves $80/month on electric bills. That’s more than the $40/month added to a mortgage.

You may also qualify for:

Infographic outlining average solar system cost, monthly savings, and available incentives like the 30% federal tax credit and SGIP battery rebates, with solar panel imagery in the background.

What Happens If a Home Doesn’t Comply?

Skipping the solar rule can cause:

  • Denied building permits
  • Delayed move-ins
  • Costly retrofits or fines

Local cities and counties are in charge of enforcement.

Are Commercial Buildings Affected Too?

Yes. Since 2023, the solar rule also applies to some larger buildings:

  • Offices
  • Schools
  • Warehouses
  • Medical buildings
  • Apartments over three stories

Batteries are still optional for these, but highly recommended.

Do Solar Panels Raise My Property Taxes?

No. Homes with solar installed between 1999 and 2026 get a tax break. This rule (called Section 73) means your property taxes won’t go up after adding panels.

Unless lawmakers extend it, this tax break ends January 1, 2027.

What Should You Do in 2025?

California now leads the way in solar energy. The solar rule helps new homes cut bills and reduce pollution. The upfront cost is real, but the long-term savings are big.

Semper Solaris is here to help. We design and install systems that follow every rule, and deliver real results.

Let’s plan your solar system the right way. Get a free quote today.

 

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