Title 24: California’s Solar Mandate Impact on Businesses
Updated
December 8, 2025
5:30
min read
About Author
Alex has spent his entire career, in solar energy. In his current role at SunGreen, Alex oversees the design and optimization of systems to ensure they fit customer needs and maximize return on investment. Alex loves the technical aspects of solar energy production and is also well-versed in Federal, state, and utility-level policies regarding renewable energy. Alex is also a regular panel member in various industry webinars.
Find out how Sungreen can help your company avoid high demand charges.
What is California’s Solar Mandate (Title 24)
California’s Solar Mandate, enacted under Title 24, is a state-wide initiative to promote clean energy and sustainability by installing solar panels on new commercial construction projects. Governed by the California Energy Commission (CEC), this mandate is part of California’s building energy efficiency standards, aiming to reduce dependency on fossil fuels.
Introduced to ensure new residential and commercial buildings are energy-efficient, the mandate requires property owners to install solar panel systems alongside battery storage systems in many cases. These systems must be cost-effective and adhere to usage-based guidelines, with the ultimate goal of meeting a percentage of the building’s energy needs through renewable energy.
Title 24 has been a game changer for sustainable building practices, especially for building types like high-rises, warehouses, and retail spaces. It solidifies California’s commitment to reducing carbon footprints while emphasizing long-term savings for businesses.
Five key takeaways from this blog
California’s Solar Mandate (Title 24): This initiative requires new construction projects in California to incorporate solar panel systems and, in many cases, battery storage. It ensures buildings meet energy efficiency standards, reduces dependency on fossil fuels, and promotes clean energy.
Impact on Commercial Businesses: The mandate affects building designs, financial planning, and operational efficiency. While initial costs may seem high, the long-term benefits include energy savings, reduced carbon footprint, and potential tax incentives.
Compliance Essentials: Early engagement with Title 24 consultants and energy efficiency upgrades like cool roofs and optimized HVAC systems can streamline the compliance process, minimize costs, and maximize energy savings.
Exemptions and Flexibility: The mandate accommodates buildings with physical constraints, such as limited roof space or consistent shading, allowing for alternative solutions like carports or efficiency adjustments.
The Role of SunGreen Systems: SunGreen Systems provides end-to-end support to ensure compliance with Title 24. Their expertise covers system design, installation, and leveraging economies of scale to achieve cost-effective solutions while positioning businesses as sustainability leaders.
How Does Title 24 and the Solar Mandate Impact Commercial Businesses
Commercial developers and property owners are some of the most affected by the solar mandate. For new construction projects, integrating solar panels and battery storage systems isn’t just an environmental move—it’s a compliance requirement.
Key Impacts Include:
Design Adjustments: Architects must allocate roof or other designated spaces for solar installations while ensuring the systems align with the building’s energy consumption.
Financial Implications: While the upfront costs can be significant, including labor and prevailing wage requirements, the energy savings over time are substantial. Most systems see a payback period of five years or less, depending on size and usage.
Battery Storage: Businesses must ensure batteries are capable of storing energy efficiently. The mandate sets a target of reducing exported electricity to the grid to 10% or less, alleviating grid strain and promoting self-reliance.
Pro Tip: Partnering with experts like SunGreen Systems helps streamline compliance, ensuring cost-effective solutions tailored to your business needs.
How Does Title 24 and the Solar Mandate Impact Commercial Businesses
Commercial developers and property owners are some of the most affected by the solar mandate. For new construction projects, integrating solar panels and battery storage systems isn’t just an environmental move—it’s a compliance requirement.
Key Impacts Include:
Design Adjustments: Architects must allocate roof or other designated spaces for solar installations while ensuring the systems align with the building’s energy consumption.
Financial Implications: While the upfront costs can be significant, including labor and prevailing wage requirements, the energy savings over time are substantial. Most systems see a payback period of five years or less, depending on size and usage.
Battery Storage: Businesses must ensure batteries are capable of storing energy efficiently. The mandate sets a target of reducing exported electricity to the grid to 10% or less, alleviating grid strain and promoting self-reliance.
Pro Tip: Partnering with experts like SunGreen Systems helps streamline compliance, ensuring cost-effective solutions tailored to your business needs.
Where is Title 24 Required
The Title 24 requirements apply across California but are influenced by climate zones. Coastal regions, inland areas, and desert zones each have unique energy needs, which are reflected in the mandate’s specifications.
Buildings with minimal roof space or located in shaded or obstructed areas may qualify for exemptions. For instance, if a roof lacks 80 contiguous square feet of space or is heavily shaded, exemptions may apply. These exceptions demonstrate the mandate’s flexibility without compromising its commitment to clean energy.
Solar Compliance Tips for Commercial Developments
1. Start Early with Title 24 Calculations
Engage with a Title 24 consultant during the planning phase to estimate solar and battery system requirements accurately. This step helps avoid costly redesigns later.
2. Consider Efficiency Upgrades
Invest in cool roofs, high-performance HVAC systems, or energy-efficient lighting to reduce overall energy consumption and minimize the size of the required solar system.
3. Explore Financial Incentives
Take advantage of state and federal tax credits, including the Investment Tax Credit (ITC) and depreciation benefits. These can significantly offset the initial investment.
4. Optimize Design for Maximum Savings
Evaluate whether your building design can support economies of scale by slightly increasing solar capacity. Larger systems often unlock better technology and cost efficiency.
5. Monitor Ongoing Compliance
Leverage software tools provided by the California Energy Commission to maintain and verify compliance during construction and beyond.
Why Partner with SunGreen Systems
SunGreen Systems has been at the forefront of helping businesses navigate the complexities of Title 24. Our team provides end-to-end support, from conceptual design to installation, ensuring your project is compliant, efficient, and cost-effective.
Why Choose Us?
Expertise in Title 24 Calculations: We work with your architects and consultants to optimize your solar system design.
Custom Solutions: From small retail spaces to large warehouses, we tailor systems to your unique energy needs.
Streamlined Installation: Our team handles everything, including permits, construction, and inspection coordination.
Ongoing Support: Beyond installation, we offer maintenance and upgrades to ensure your system’s longevity and efficiency.
Benefits of Partnering with SunGreen Systems
Closing Thoughts
California’s Solar Mandate is paving the way for a sustainable future, driving innovation in the construction and renewable energy industries. By aligning your business with Title 24 requirements, you not only meet compliance standards but also take a proactive step toward cost savings and environmental stewardship.
Ready to make your building energy-efficient and compliant? Contact SunGreen Systems today.
