As California continues to lead the charge toward sustainability, the California Energy Commission (CEC) has implemented a transformative mandate that requires newly constructed commercial buildings to incorporate solar and battery storage systems.
Effective January 1, 2023, this mandate is part of an updated Building Energy Efficiency Standards under the California Energy Code, aimed at achieving 100 percent carbon neutrality by 2045. At Stellar Solar, we are excited to offer our expertise to help commercial property owners navigate and comply with these new requirements.
Categories of Commercial Buildings Affected
The new standards apply to a variety of commercial building types, including but not limited to:
– Theaters
– Financial institutions
– Hotels and motels
– Unleased tenant spaces
– Clinics
– Office buildings
– Medical office buildings
– Schools
– Grocery stores
– Retail centers
– Libraries
– Warehouses
– High-rise multifamily buildings
– Restaurants
– Convention centers
– Auditoriums
These buildings must now include a solar array and a battery energy storage system (BESS) as part of their construction plans.
Sizing Requirements for Solar Photovoltaic (PV) Arrays
The size of the required solar system is determined by the type, size, and climate zone of the building. The minimum size of the solar PV system is defined by either Equation 140.10-A or the total Solar Access Roof Areas (SARA) multiplied by 14 W/ft², whichever is smaller.
Equation 140.10-A:
- CFA = conditioned floor area in square feet
- A = PV capacity factor specified for the building type
SARA encompasses all roof space capable of supporting a PV system, including covered parking areas and other structures.
Exemptions from Solar PV Requirements
Certain conditions exempt a building from needing a solar PV system:
- SARA is less than 3% of the conditioned floor area.
- Required PV system is less than 4 kWdc.
- SARA contains less than 80 contiguous square feet.
- Roof design does not meet specific structural criteria.
- Multitenant buildings in areas without virtual net metering or community solar programs.
Sizing Requirements for Battery Energy Storage Systems (BESS):
The capacity of the BESS is determined using the following equations:
Equation 140.10-B:
- kWhbatt = rated usable energy capacity of the battery storage system in kWh
- kWPVdc = PV system capacity in kWdc
- B = battery energy capacity factor
- D = round-trip efficiency of the battery storage system
Equation 140.10-C:
- kWbatt = power capacity of the battery storage system in kWdc
- C = battery power capacity factor
Exemptions from BESS Requirements:
Buildings are exempt from BESS requirements if:
- Installed PV system size is less than 15% of the size determined by 140.10-A.
- ESS requirement is fewer than 10 kWh rated capacity.
- Single-tenant building has less than 5,000 square feet of conditioned floor area.
- Located in Climate Zone 1.
How Stellar Solar Can Help
At Stellar Solar, we understand the complexities of meeting these new regulations! Our team is equipped to assist developers and business owners in navigating these requirements efficiently and effectively. Here’s how we can help:
Customized Solar Solutions:
We design and install top-tier, efficient solar PV systems tailored to the specific needs of each building type. Our customized approach ensures maximum energy production and compliance with state mandates.
Battery Energy Storage Integration:
We provide integrated solar and storage solutions using CEC-approved hardware. Our partnerships with leading manufacturers like BYD, Tesla, and Socomec ensure that our systems meet all national safety and performance standards.
Financial and Incentive Expertise:
Our in-house experts are well-versed in the latest federal, state, and local incentives, grants, and tax credits. We help clients maximize their financial benefits and achieve quick returns on investment.
Federal Solar Investment Tax Credit (ITC): One of the most significant financial incentives available is the federal Solar Investment Tax Credit (ITC). As of now, the ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This tax credit applies to both residential and commercial systems and there is no cap on its value.
How It Works:
- Deduction Percentage: The ITC allows for a deduction of 30% of the total system cost from federal taxes.
- Eligibility: Both residential and commercial solar installations qualify for this incentive.
- Flexibility: If the tax credit exceeds your tax liability, the excess amount can be rolled over to the next year as long as the tax credit is in effect.
For commercial property owners, this translates to substantial savings on upfront installation costs, making solar investments more attractive and financially viable. Additionally, businesses can also benefit from accelerated depreciation under the Modified Accelerated Cost Recovery System (MACRS), which allows for further tax savings by recovering the cost of solar assets over a specified period.
By leveraging these financial incentives, our team at Stellar Solar ensures that you receive the maximum benefit from your solar investment. Our expertise in navigating these incentives allows us to offer the most cost-effective solutions, tailored to meet your specific needs and financial goals.
To learn more about how you can benefit from the ITC and other available incentives, contact our team today for a comprehensive consultation.
Project Modeling and Economics:
Using our ETB Developer platform, we model the project economics and potential savings for new buildings. The platform includes features like the ETB Load Profiler to generate accurate load profiles, ensuring optimized system design and performance.
Comprehensive Services:
From initial site surveys and design engineering to installation and maintenance, we offer end-to-end solutions. Our turnkey services also include handling all permitting, rebates, and compliance paperwork, minimizing hassle for our clients.
Get Started Today
With over 14,000 installations and 24 years of industry experience, Stellar Solar is San Diego’s trusted partner for commercial solar solutions. Our commitment to quality and customer satisfaction is unmatched, as evidenced by our numerous positive reviews and high-profile client list, including the Salk Institute and Cedars-Sinai.
Check out this video showing Stellar Solar’s commercial solar portfolio.
Now is the perfect time to invest in solar and storage for your commercial building. With the new mandate in place and financial incentives at an all-time high, Stellar Solar can help you achieve compliance while reaping significant energy savings and contributing to a sustainable future.
Contact us today for a free commercial solar site evaluation and take the first step toward a greener, more energy-efficient future with Stellar Solar.
