City may help with solar setup financing

City may help with solar setup financing

RICHMOND: Under proposed program, homeowners would pay back loans as an add-on to property taxes

By Katherine Tam

STAFF WRITER
Article Launched: 11/30/2007 03:07:02 AM PST

At $20,000 or more, solar panels are simply beyond the price range of many. But Richmond is trying to alleviate sticker shock and get more panels on roofs.

City officials are looking at footing the upfront cost for property owners, who then would pay the money back on their property tax bills over 20 years.

"Everybody is in favor of solar panels, but the issue is if it's not cheap enough, people won't do it on a widespread basis," Councilman Jim Rogers said.

Solar power has soared in popularity in recent years, particularly with the help of government incentives.

Richmond resident Nick Despota went solar last month after learning that state rebates would foot part of the bill. His system cost $20,000, but state and federal rebates and tax credits dropped the final price to about $14,000.

"People who are younger and just buying their house may not have the kind of money upfront to purchase it," said Despota, who considered solar power for two years before taking the plunge. "I think anything that enables people to manage the upfront cost is a good thing."

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Some worry about how the city will finance such a venture.

Councilwoman Maria Viramontes said she supports solar power but added, "We don't even see how we're going to find the money to get us to enough police officers. And everyone here wants to do violence prevention. Long-term social services to the highest-risk population costs a lot of money. Somewhere, someone is going to have to have a realistic conversation about how we're going to pay for this."

Some financing options might not cost the city anything, Rogers said.

Mayor Gayle McLaughlin added that officials should talk to Earth Share, a national coalition of environmental groups with financial expertise and ideas on how such a program could be financed through the private sector.

Richmond could partner with Berkeley to seek private-sector financing or a bond issue, thereby getting more bang for the buck, Rogers said. Administrative costs for running a program could be shared.

If a house or business with solar panels is sold, the solar tax would pass to the next owner.