Sustainable energy financing districts, as pioneered by the city of Berkeley, will enable building owners to pay for solar panels and solar hot water systems over 20 years through a special tax on their annual property tax bill. This program overcomes a common obstacle of costly upfront investments which may take more years to recoup than the owner intends to keep the building. The owner immediately begins saving money on electricity bills without incurring the upfront cost of installing a solar system. The interest portion of the assessment may be deductible on the owner’s federal income tax return. When the house is sold, the solar array and the tax assessment remain with the property, passing on to the new owner.

Another option is to work with redevelopment districts to help finance solar installations and energy efficiency measures. Redevelopment districts spend local taxes in the same neighborhood where they are collected to meet specific neighborhood goals. One of these goals is keeping the cost of living affordable for existing residents in the neighborhood. Decreasing the cost of utilities through energy efficiency improvements and installing solar panels can help keep the cost of living affordable. The Oakland City Council has recently granted funds to the nonprofit Grid Alternatives to install solar PV panels on several homes owned by low-income residents or a non-profit in the one of the city’s redevelopment areas.

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2008-09-17 Berkeley encourages residents to go solar