Berkeley To Approve Solar Financing Plan
09/15/2008
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.