Berkeley City has hit what could be a gold mine on financing clean, but costly, renewable energy. The city started a solar financing program which allows property owners to borrow money to install solar photovoltaic systems and pay the cost over 20 years through a special tax on their property tax bill.
This reduces the up-front cost; repayment is spread over 20 years; financing costs are comparable to a mortgage; when property is sold the new owners start paying!
The Berkely FIRST program, as it is called, is currently in its pilot phase and the application period is now closed. In fact the total project costing the city $1.5 million was sold out in the first nine minutes of being announced! Thirty-eight solar installation projects, distributed throughout Berkeley, have funding committed by the City of Berkeley.
And now, San Francisco plans to adopt municipal financing that helps building owners add renewable power. Its program for $30 million will fund any renewable energy source including co-generation, geothermal ground heat exchanges, wind power and even just efficiency measures like boiler upgrades and tank-less heaters.
Municipal tax assessment financing eliminates the loan application process. The loan is attached to the property rather than the individual. Thus, the owner can make the retrofits and later sell the property without worrying about the cost of the retrofits being watered down in the overall sales price of the house or building.
Good idea to encourage renewable energy? Can our municipal authorities be enthused?
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