Updates About the Berkeley Solar Program

The Berkeley Financial Initiative for Renewable and Solar Technology (FIRST) program is an initiative designed to offer low-interest solar loans to Berkeley residents to cover the installation of solar power systems in homes. Property owners would directly contract with qualified private solar installation companies for the projects to be completed on the property. The city would provide a loan or bond to cover the installation, and  homeowners would then be allowed to pay these costs over 20 years as an annual property tax assessment.  The Berkeley FIRST program is designed to overcome many of the financial obstacles that have prevented homeowners from undertaking solar energy projects for their homes.  First, the program allows for little to no upfront costs for the property owner.  Second, because the costs are paid back through a voluntary property tax, the project will avoid directly affecting the owner’s credit. Though the program may not be the best choice for all property owners, the rates offered by the city bond or loan will be comparable to a traditional equity line, and will likely provide lower interest rates than are commercially available. Also, the commitment to pay the tax transfers with the property, and thus if the property is sold before the 20-year period is up, the tax is taken over by the new owner.  While the program promises to provide an economical approach to going solar, one should not wait for the programs advent to install solar technology in his or her home if they had prior plans to do so, as state rebates on solar panelling are due to possibly expire by the end of 2008.  

 The citywide voluntary Sustainable Energy Financing District would allow property owners (residential and commercial) to install solar systems and make energy efficiency improvements to their buildings and pay for the cost as a 20-year assessment on their property tax bills. There is little upfront investment by the property owner and the debt transfers when they sell the property. This is how Berkeley’s program would work:

1. A property owner would hire a CSI approved (California Solar Initiative) solar installer, who would determine the best solar system for the property, depending on energy use. Most residential solar panel systems in the city cost from $15,000 to $30,000.

2. The city would pay the contractor for the system and its installation, minus any applicable state and federal rebates, and would add an assessment to the property owner’s tax bill to pay for the system.

3. The extra tax would include administrative fees and interest, which would be lower than what the property owner could obtain on his own, because the city would secure low-interest bonds and loans. The tax would stay with the property even if the owner sold, although the owner would have to leave the solar panels.

4. The property owner would save money on monthly Pacific Gas & Electric bill because electricity generated by the solar panels would partly replace electricity delivered by the utility. After the assessment expired, the solar panels - a simple technology that requires little or no maintenance - would continue to partly replace PG&E electricity generating FREE power!

If you are interested in seeing if solar power works for you, please fill out this form: