The City Of Berkeley yesterday voted yes to a program providing financing to retrofit Berkeley homes with Solar Power. The program is designed to reimburse property owners for the costs of putting in solar power systems. In turn the property owners would pay the city back over 20 years, including interest, in a form of property tax. Only property owners taking advantage of the program would see the extra charges on their tax bills.According to New York Times, The city’s mayor, Tom Bates, said in an interview shortly before the vote, “I think this is probably the most important contribution Berkeley can make toward taking on global warming,” and reducing greenhouse gases.
He added, “I think the idea is going to go like wildfire” through other city governments. Already, he said, nearly two dozen cities, from San Francisco to Annapolis and Seattle to Cambridge, Mass., have called indicating they want to follow suit.
Special tax districts to fund public projects is not new and has been used to finance many projects all over the country. But it is the first time this technique has been use to finance solar powering private properties. The city in November claimed to be the first to approve the creation of a Solar Power Financing program using property taxes to front the costs of residential and commercial solar projects.
Also the city waive the building permit fees for solar installation on single homes. I for one hail Berkeley's initiative and cities like Santa Cruz County in California and the city of Boulder in Colorado are on their way to make their own programs based on Berkeley's initiative.
City will need to finance the initial pilot project of about 50 homes that is estimated to cost about $1.5 million. According to city, about 100 people have shown interest. According to San Francisco Chronicle, for a typical solar energy system costing about $22,000, residents would pay about $180 a month, based on a 6.75 interest rate, after state and federal rebates are issued.
This might lead to electricity bill surpassing the solar tax, as energy costs continue to climb. Once the initial wave is completed, there might be other entities stepping into the slate. Already companies such as SunRun, pay for the costs of installing and operating solar power systems in exchange for a one-time payment to defray the initial cost and a long-term electricity contract with each residential customer, who doesn't own the system. I think and hope the Berkeley FIRST will be successful.
Way to Go Berkeley, F.I.R.S.T!
