Commercial RE is Going Solar
August 21, 2017
Have you heard that five cities in California currently have a solar mandate? It’s true – there are currently five cities that require solar panels for new buildings – either residential, commercial or both.
As of August 2017, these are the California cities that require installation of solar energy equipment: Culver City (2008), Lancaster (2013), Sebastopol – residential and commercial (2013), San Francisco - residential and commercial buildings (2016).
In 2008 Culver City took the lead to become the first municipality to require photovoltaic cells on commercial projects over 10,000 square feet. One and two-family residences were exempt from the mandate, along with certain other types of structures such as parking garages. Since Culver City took that step, four other California cities have approved mandates that require solar energy be used for new construction and some building remodels.
Santa Monica joined this growing list in May 2016, just weeks after San Francisco approved their mandate.
The Santa Monica mandate is unique in several respects. Its requirements affect both new construction whether it is residential or commercial. Remodels where 50% or more of the existing structure is demolished are included under the mandate as well. Their mandate is more aggressive than others that came before it because it sets requirements for how much total wattage needs to be produced. The required wattage is determined by multiplying the number of square feet in the building times two. The other four cities on the list only require 1.5 watts of power. The solar panels need to be installed and operational at the final building inspection.
Officials in Santa Monica, and the other cities in California who have solar mandates, have two primary motivations. A commitment to lowering carbon emissions while utilizing more sustainable resources that, at the same time, create buildings that have lower operating costs.
As more cities across California are mandating the use of solar energy, there are also financial incentives available for a variety of projects that increase energy efficiency and the shift toward using more renewable power.
Are there mandates in your city? How has this impacted your commercial real estate plan?
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