San Francisco Now Offering Famous Berkeley PACE Program

In San Francisco, solar power is fast becoming a way of life. Solar panels adorn well over 1,000 rooftops and provide power to such noted SF landmarks as AT&T Park, home of the San Francisco Giants, and (soon) Alcatraz Island. The city has become a leader in solar power and green building through a number of political and policy steps promoting green technology. Indeed, San Francisco and the greater Bay Area are the unrivaled epicenter of the US solar industry.

And now, San Franciscans have a yet another avenue for going solar. As of April 12, homeowners can get loans from the city to cover the cost of a home solar power system, paying it back over time through an increase in property taxes. Spearheaded by nearby Berkeley in 2007, this program is canvassing the country as if it were riding the jet stream. Hundreds of cities, counties and states have since adopted their own version, and the federal government is developing a general guide to other municipalities who’d like to do the same. The federal program is called Property Assessed Clean Energy (PACE).

In San Francisco, it’s called GreenFinanceSF and, like its Berkeley progenitor, it has several key components that separate it from other incentive programs. First of all, it eliminates up-front costs for homeowners — the biggest barrier to accessible solar power. As mentioned earlier, the city covers the cost of the solar system and the homeowner pays it back through property tax assessment. Which leads to the other key advantage of GreenFinanceSF: the loan is tied to the property, not the homeowner. So if you sell your house, the obligation (and the energy savings) go to your successor.

In addition to solar power, the San Francisco version also covers other energy efficiency and renewable energy upgrades. In general, says the San Francisco Chronicle, any project that adds renewable energy or cuts water and energy usage probably qualifies. These include energy efficient appliances, insulation, low-flow toilets, et al.

GreenFinanceSF also has its own unique terms:

• The minimum loan amount is $5,000 and maximum is either $50,000 or 10% of home value, whichever is less.
• Maximum loan payback period is 20 years, which is a likelihood for long-lasting solar panels, but for other equipment, like appliances, payback is set to match the expected lifespan of the product.
• Funding comes from bonds, not the city’s general fund.
• There is an application fee of $300 and some money may still have to be paid up front (such as a deposit to the contractor prior to work), as funding is received after the project is complete. Upon approval, you have 180 days to complete the work.
• Business and commercial property owners are also eligible to apply, but under slightly different guidelines.

Source: SFGate

Photo Credit: eTeamz

Posted on April 19th in Solar Funding by Dan.