Non-Profit to Expand Berkeley Solar Plan

The innovative solar financing program ushered into Berkeley, California has been wildly popular. Other cities in and out of California adopted similar programs, generating interest from all corners of the globe. Last year, the California State Legislature passed a bill ensuring that all cities and counties in the state would have the authority to adopt the Berkeley plan if they so desire.

That widespread freedom inspired a California non-profit, California Statewide Community Development Authority (CSCDA), to develop a larger version of the program that would make it easier for more cities and counties to adopt a plan similar to Berkeley’s.

Photo Credit: emagazine.com

The now-famous plan works like this: the city sells bonds to pay up front for residential and business solar systems – systems the residents pay for through a voluntary increase in property taxes (with interest) over 20 years.

The program eliminates the main concern for homeowners looking to adopt solar power: up front costs. A reasonable increase in property taxes, which stays with the house should the owner choose to sell, has proven much more appetizing than initial costs upwards of thousands of dollars, even with tax incentives factored in. The Berkeley plan was so popular, its application limit was reached in just nine minutes.

The CSCDA will use the same company Berkeley used to develop their program, Oakland-based Renewable Funding. This plan, however, will give cities and counties a chance to join a larger program that will administer Berkeley-esque programs to those that sign on. In this way, cities won’t have to devise their own plan, line up financing or administer the program. All of that is taken care of.

That removes many of the challenges for municipalities trying to incentivize solar power locally, and by centralizing the process to some extent, it should streamline creation and save the city or county money as well.

The CSCDA plans to include energy efficiency improvements in addition to solar power systems, although improvements will have to be permanent (i.e. new light bulbs won’t qualify). The program is set to kick off in the fall. Once cities and counties have a chance to sign up, residents and businesses will get theirs too, which should come early in 2010.

Via: greentechmedia

Posted on September 9th in Solar Funding by Dan.