What Would Happen if Arizona Required Solar Power for All New Homes?

on May 13, 2018

AZ-CentralThe California Energy Commission this week required all new homes built in that state to have rooftop solar starting in 2020.

The bold new requirement raises an interesting question for the Golden State’s sun-drenched neighbor: What would happen if Arizona enacted such a policy?

Some new housing developments offer solar as an option, or even a standard feature, but Arizona doesn’t require the panels on new homes.

The new California regulations, which also include a variety of energy-efficiency measures like low-power lighting and insulation, are expected to add about $9,500 to the cost of a new home.

That should add about $40 to the average monthly payment on a 30-year mortgage, according to the energy commission.

But the panels are estimated to save customers about $80 a month in heating, cooling and lighting, according to the commission. That is a savings of about $19,000 over the usual 20-year lifespan of solar panels.

If Arizona passed a similar initiative, the cost would be about the same, though housing prices, in general, are higher in California than Arizona.

The value of rooftop solar would be slightly less for Arizonans, however, because energy generally costs less here. According to the U.S. Energy Information Administration, homes in Arizona paid about 12 cents per kilowatt-hour of electricity in February this year. In California, the cost was about 19 cents per kilowatt-hour.

So a system that generates 500 kilowatt-hours of electricity a month in California saves customers $95 a month there, while the same system (not accounting for weather differences in each state) would save an Arizonan $60.

Supply-demand concerns in Arizona

Arizonans have shown strong interest in solar — more than 77,000 Arizona Public Service Co. customers have rooftop panels.

But utilities here are increasingly focused on using batteries in addition to solar so that the supply of energy from solar panels can be stored and used when it is needed later in the day.

APS spokeswoman Jenna Rowell said the utility has not taken a formal position on the California requirement. Salt River Project officials didn’t immediately respond to questions regarding whether they would support a similar measure in Arizona.

The new California standards don’t require battery storage for homes, but if a home has a battery, the size of the solar array required on the roof is reduced.

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