Nov 6, 2007 11:40 pm US/Pacific
Berkeley Approves Solar Power Loan Program
BERKELEY (CBS 5) ―
The Berkeley City Council has given the green light on a new green initiative: a solar power loan program that would be the first of its kind in the nation.
The council unanimously approved a concept put forth by the mayor's office that would loan individual property owners the up-front cost of installing solar panels; a fee that costs $20,000-30,000 depending on the size of the home.
The deal is not done. City staffers will spend the next 6 to 8 months working out financial, legal and tax details and should have a proposal for final approval of the council by next summer.
The initiative calls for the city to facilitate a 20-year loan with a small interest – perhaps as low as 2 percent - to individual homeowners. Homeowners would pay back the loan every month along with property tax bills. Since going solar usually means a zero dollar electric bill, it could end up costing homeowners nothing.
Tom McCalmont of Regrid Power, a solar energy company, said homeowners could break even about halfway through the loan.
"The payback is 8 to 10 years and it delivers power for 30 years," McCalmont said.
Berkeley Mayor Tom Bates said the project would benefit homeowners, even if they decide to sell the property before the 20 year loan period is over.
"A lot of people say, 'I'd love to go solar but I'm not planning to be here the rest of my life,'" Mayor Bates said. "When they sell, they get the benefit. The new owner will take over the obligation. So, it's a big giant win-win."
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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