Question
On the average, the new PV requirements will add about $8,400 to the cost of a single-family home. Wouldn’t that make homeownership less affordable at a time where California’s home prices are already out of reach?
Answer
No. A home with solar costs less to own than one without. Put another way, the benefits of solar outweigh its costs, such that the new homeowner is saving money from day one in the home. That family will save thousands of dollars over the first decade of ownership.
Home affordability includes both the first cost and operating costs, which include utility bills. The PV requirement actually makes homeownership more affordable: the reduction in energy bills exceeds the corresponding increase in mortgage payment by around $35 per month on average.
If first cost is a primary concern – as it is for many including young families and first-time home buyers – the cost of PV need not be covered by the home price or mortgage principal. PV options are already today routinely leased instead of purchased outright. Leased PV systems have little or no upfront costs, and offer up to 20 percent electric bill savings; thus the same logic as above applies. In the future, community-shared solar options may also be available as an alternative to onsite PV systems, with little or no upfront costs.