Converting a garage into an ADU in Morgan Hill? Whether you need solar depends on a specific Title 24 exemption pathway — and most garage conversions in California qualify. Here's exactly how the rule works in Morgan Hill.
Generally, no. Title 24's solar mandate applies to new construction, and the California Energy Commission has clarified that converting an existing garage into an ADU is treated as an alteration of existing conditioned space — not new construction — when the original garage walls and roof remain.
That means most pure garage-to-ADU conversions in Morgan Hill are exempt from Title 24 solar requirements. However, the exemption is documented and signed off by your designer on the CF1R form during permitting with the Morgan Hill building department.
Several scenarios pull a garage conversion back into the Title 24 PV requirement. If your project includes any of these, plan on a small solar system.
Even if exempt, many Morgan Hill homeowners voluntarily add a 2–3 kW solar system to their garage-conversion ADU. Reasons include offsetting tenant electricity costs, hedging against PG&E rate hikes, and qualifying for the 30% federal solar tax credit.
In climate zone 4, a small voluntary system on a converted garage typically pays back in 6–9 years even under NEM 3.0 net billing — faster if a battery is added.
A voluntary 2.0–3.0 kW system on a Morgan Hill garage conversion typically runs $4,000–$7,000 cash. With HDM financing, the effective net cost can drop to $2,500–$4,500 by passing through the commercial ITC.
Most pure garage-to-ADU conversions in Morgan Hill are exempt under the existing-conditioned-space provision, as long as you keep the original garage walls and roof and don't expand the footprint.
Major structural rebuilds can disqualify the exemption and trigger Title 24 PV. If you're tearing down and rebuilding most of the garage, the project may be treated as new construction by Morgan Hill plan check.
A voluntary 2–3 kW system typically costs $4,000–$7,000 in Morgan Hill, or roughly $2,500–$4,500 effective cost with HDM financing.