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Forward-Thinking Milpitas, CA the Next Solar City?

Milpitas, an East Bay, CA city, is trying to create its own power source. Essentially, they would allow homeowners to pay for their solar installations the same way they pay for their sidewalks. The city raises capital upfront with municipal bonds and is then reimbursed through the tax system. The homeowner doesn’t need a big bank loan that is due upon the sale of the home; the next inhabitant just picks up the taxes. milpitas home solar power incentives The project, if undertaken neighborhood-by-neighborhood, allows for the pros and cons to be weighed and establishes tax rates and other essentials for citywide implementation. The recent changes to California law now allow this type of assessment arrangement.

The city wants to offset the potential drain on the grid because they feel the electric car and plug-in hybrids are right around the corner in 2010-11. That, coupled with the fact that Solyndra, the leading Bay Area solar manufacturer, has just secured a lease for a space covering 30 acres with a square footage of 506,000 in the Milpitas area. The lease is believed to be the largest in the Bay Area in the past 20 years! Add in California’s new mandate requiring utilities to pay for excess power generated by home solar installations and support from the Obama administration, and you’ve got yourself one forward-thinking city that’s moving in a sound direction.

The city of Milpitas will rely on regional solar manufacturers and installers to help complete this project, but those exist in an abundance in the Bay area. This could be a great test site for communities across California, and there are some already moving toward this idea, along with communities in the 14 other states drawing from the California statute.

Either way, a city government reinventing its role toward a sustainable future for the community it serves is amazingly exciting. The sale of municipal bonds rather than individual credit is bound to increase the accessibility of solar power. And it creates a power company controlled by the city government, which is likely to be a stable source of power. Although a plan like this could become dangerous, depending on future leadership. But the city still needs PG&E, the customary utility provider, for things like major power draws, nights and cloudy days, so it really could become a win-win for all involved. PG&E has the capital – you can bet they’ll be coming up with a clever way to get in on that power production, too.

Still, this sort of idea and move toward implementation could really bring about the solar change so many of us are hoping for. The cost is the main inhibitor to the widespread use of solar power and panel prices are dropping (40 percent this past year with more to come), incentives are increasing and legislation is starting to protect the fledgling industry as it gains repute. Like all things technology, after it becomes commonplace, it becomes affordable and solar technology is no exception. After all, it takes time to come up with beneficial mass production.

Innovation is part of creating the American dream. A tip of the hat to you, Milpitas.

Source: MercuryNews.com

Photo Credit: BACWA

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