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09/15/2008 08:56 AM
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Berkeley To Approve Solar Financing Plan
SustainableBusiness.com News
The city of Berkeley, California is expected to approve a new plan on
Tuesday that will allow homeowners to pay for solar power systems
through their property taxes.
The city proposed the innovative plan about a year ago, and it has been closely watched by communities around the country interested in creating similar systems.
The plan creates a new tax district, which residents can join
voluntarily. The City would reimburse homeowners for the the cost of
solar power systems, and the homeowners would pay the city back at a
fixed rate over 20 years.
The plan has two primary advantages. The city can borrow money
at a lower interest than individuals. And the responsibility for
payment of the system is tied to the ownership of the house. So, if the
purchaser of the solar power system sells the home, the next homeowner
takes over payments to the city.
City staff members have been negotiating with several financial
lending institutions and will announce their selection next week,
according to the San Francisco Chronicle.
Figures supplied by the city show that for a $22,000 solar energy
system, residents would pay about $180 per month, based on a 6.75%
interest rate, after state and federal rebates
Other cities working on similar financing models include San
Francisco, Santa Cruz County, Palm Desert (Riverside County), Galt
(Sacramento County), Boulder, Colorado.
