berkeley solar program

The Berkeley City Council unanimously approved a measure on Tuesday night to fund a program providing loans to property owners for the installation of rooftop solar-power systems. The program is the first of its kind in the nation, which creates a new sustainable energy tax district (pdf) within the city.

Property owners who opt into the program will be given loans for solar systems and pay no up front costs. At an average cost $22,000 apiece (after a $6,108 rebate from the state-run California Solar Initiative), the systems will be paid for over a 20-year term. Homeowners pay off the loan as part of the property tax bill. The cost of the loan will run around $180 per month at an annual rate of 6.75%.

The innovative idea behind this city-run financial mechanism is that homeowners would pay for solar energy via an opt-in property tax increase that would be offset by annual savings on their electric bills.