On April 20, 2016, San Francisco became the first major US city to pass legislation mandating the installation of solar energy systems on new building construction. The City Board of Supervisors unanimously passed the new law, which is aimed to help move San Francisco closer to its goal of meeting 100% of the city's electricity demand with renewable energy. California law currently requires 15% of the roof area on small and midsize buildings to be "solar ready," meaning unshaded by the building itself, but does not require actual solar energy system installation. The new law requires actual installation.

The new law applies to building developers that apply for building permits after January 1, 2017 for the construction of both residential and commercial buildings with ten floors or less. The solar energy system can be either a solar electric system or solar water-heating system. The solar energy system must be located on the roof or overhang of the building or another structure within 250 feet of the building or on covered parking within the building.