What’s up with the Berkeley FIRST solar financing program?

Published on November 6, 2008 by Dave Llorens.
Categories: Solar Financing.

By Guest Author Sheldon Norberg

Berkeley’s long awaited solar program hit the ground yesterday, with the 40 initial financing spots being lotteried off at 9 AM. From the turnout at their public information meetings, it could be as many as five entries for each spot. However, most folks in Berkeley are sharp enough to take a pass on B FIRST and invest in solar for themselves.  Here’s why.

Originally touted as a low cost financing option (with rumors of 2% fixed loans) B FIRST’s novel approach of placing the financial burden on parcel taxes seemed like a smart move. As well intended as it may be, the B FIRST program took over a year from inception to delivery, and in that time, the interest rate has gone up considerably.

More importantly, with congress finally passing the 30% tax credit extension, the program actually costs more than buying yourself. As we read it, the federal prohibition from receiving tax credits on purchases funded by bond measures means that Berkeley FIRST candidates pay $5,000-15,000 more for their system than they ordinarily would. Put that on a 20-year loan with no pre-payment option, fix it to your property tax bill,  and see who wants to buy your house in a few years.

The additional factor left unconsidered by the city of Berkeley is that the financing doesn’t come through for a month or more  after the job is done. I can’t think of any quality solar installer that’s going to want to loan anyone $20-50,000 for that amount of time, so you may need to get a loan for the job, and then pay it off with the B FIRST loan. Or perhaps not.

You can find out all about solar and your (bay area local) financial breakdown by attending our free online webinars.

Sheldon Norberg
Sun’s Free Solar
www.sunsfreesolar.com
510 496-6008

Berkeley Passes the Kick Ass Solar Loan Program!

Published on November 7, 2007 by Dave Llorens.
Categories: Solar Legistlation.

The Berkeley City Council met yesterday and decided to move forward on the solar power tax-based financing system that we covered two days ago. The details still have to be smoothed out (half a year?) and then anyone can install solar in Berkeley and get them to pay for their photovoltaics, and add the cost to your tax bill over 20 years. That means you don’t need cash on hand to do something that saves you money then and there. Piece of cake. It will be hard for people to ignore the possibilities now.

AWESOME!

2 Days until Berkeley, CA Votes on Revolutionary Solar Legislation

Published on November 4, 2007 by Dave Llorens.
Categories: Solar Legistlation.

Ahhhh, Berkeley. Hippies, bumper stickers, bikes, activists, the guy who made this goofy solar car, the naked guy, and the state of California’s best whack at Chicago deep dish – Zachary’s pizza. I love Berkeley. I love everything about it. It’s a happy place, and it’s about to get happier.

To help with Measure G (an aggressive initiative to get an 80% reduction in greenhouse gas emissions by 2050), Tom Bates, mayor, will urge City Council to approve “Sustainable Energy Financing District,” two days from now on Nov 6. I’m excited.

This will be the most progressive city legislation concerning renewable energy in the US. It’s huge. No one has done it before. Berkeley will be fronting money for solar energy systems. They’ll PAY FOR YOUR SYSTEM and charge it back to you on your tax bill for 20 years. If successful, look for numerous other municipalities around the state and the nation to copy it.

I mean, forget compelling… This would make it so undeniably easy to determine if solar is a good financial move. People won’t be able to ignore this. If this legislation passes, it eliminates all variables from a homeowner’s decision to go solar. All a homeowner needs to do is:

1) Call an installer to come out and give them a quote on a solar system.

2) See if the increase in their property tax assessment from the system would be less or more than the power savings.

If it’s less, a homeowner goes ahead and employs the solar power system, no question, no brainer. There’s no risk anymore. Even if you sell the house, the tax liability AND the system transfer with the house! Homeowners need not worry about continuing to pay for a system they aren’t using anymore.

So now, instead of evaluating several risk factors, all you have to do is compare two numbers. If you one is bigger you buy a PV system, if it’s not, you don’t. Very rarely are there investment opportunities where you can pinpoint with such certainty what the return will be.

Some further reading on the measure here:

Berkeley Daily Planet

Sustainable Business

SF Gate