Blog

My idea for solar power for Lighthouse Pt was in part based on a reference in the “Green Collar Economy”. The book also mentioned the City of Berkeley California has a pilot program in place for solar financing.

Berkeley FIRST is a Financing Initiative for Renewable and Solar Technology

Berkeley FIRST is a solar financing program offered by the City of Berkeley. It provides property owners an opportunity to borrow money from the City’s Sustainable Energy Financing District to install solar photovoltaic electric systems and allow the cost to be repaid over 20 years through an annual special tax on their property tax bill. The tax will only be paid by Berkeley property owners who voluntarily participate in the Berkeley FIRST program.

Berkeley FIRST is intended to solve many of the financial hurdles facing property owners who want to install solar systems. To calculate the cost benefit of the Berkeley FIRST program for your household energy needs please see the UC Berkeley RAEL calculator on the UC Berkeley website. The advantages of the Berkeley FIRST program are:

There is relatively little up-front cost to the property owner.
The cost for the solar system is paid for through a special tax on the property, and is spread over 20 years.
The financing costs are comparable to a traditional equity line or mortgage.
Since the solar system stays with the property, so does the tax obligation—if the property is transferred or sold, the new owners will pay the remaining tax obligation.
Pilot Program

I ran their solar savings calculator. There are assumptions that don’t apply to us, including a state rebate. However, by the time we get something in place locally, hopefully there will be action on the federal or state level that includes rebates and possibly federally sponsored financing for cities.

PG&E charges residential customers 16 cents per kilowatt hour as of Oct 2008.
FPL charges residential customers 12.06 cents per kilowatt hour as of Sept 2008. FPL will be reducing rates in 2009 due to lower fuel costs.

Without digging further it would seem there is potential benefit to apply locally. My home is under 2000 sq ft that I used the example for. It would cost me $80 annually to go green in this model. That’s OK with me. Additionally, the costs are based on a huge system covering 6200 sq ft. If you have a 6200 sq ft home, your bill will be higher than $180 peak months and you’ll have savings. Obviously I don’t need that much. Whether I get a full system or a system that is just for hot water only, a large, wasteful part of every homes electric costs, I’m sure I could save too.