S.F. proposes subsidy program to encourage solar panel installation
Tuesday, December 11, 2007
Companies and homeowners who pay to install solar panels in San Francisco could save over 50 percent with help from an ambitious subsidy program, according to city officials who will announce the plan Tuesday.
Some experts say the effort is groundbreaking and, if implemented, could be the nation's biggest such program. The proposed subsidy would be $3,000 and $5,000 per residence and up to $10,000 for businesses. City officials are also proposing a low-interest financing program that would allow residents to incrementally pay back money borrowed for solar installations at below-market rates, possibly via charges on their property tax bills.
When combined with the state's solar rebate program and federal tax credits, the cost of installing solar could be cut in half for San Francisco residents and businesses, officials said Monday. With all those incentives, a typical 3-kilowatt residential system would cost between $16,370 and $18,370, based on current San Francisco installation costs.
"The type of leadership that San Francisco is demonstrating is probably unparalleled," said John Stanton, spokesman for the national Solar Energy Industry Association. "We haven't seen this type of local government commitment and initiative for a carbon-free future."
Claudine Schneider, president of the Solar Alliance of solar businesses and a former five-term congresswoman from Rhode Island, said her organization is excited about the program.
"We only hope that many other cities follow course," she said.
The subsidy and loan plans are separate programs and each must still be approved. The subsidy program needs support from the city Public Utilities Commission and the Board of Supervisors; the loan program needs the approval of both the Board of Supervisors and voters. Supervisors Tom Ammiano and Jake McGoldrick are co-sponsoring the subsidy ordinance.
The target start date for the subsidy program is July 1, and the end of next year for the loan program.
The cash-incentive is the centerpiece of 10 months of work by the city's Solar Task Force, city Assessor Phil Ting said Monday. Ting co-chairs the task force with PUC Commissioner Doug Hochschild.
"We think this is the largest local incentive program of its kind," Ting said.
A few other cities offer rebate programs. Los Angeles Department of Water and Power offers one of the most generous, amounting to about $4.50 per watt, or about $13,500 on a typical 3-kilowatt home solar system. However, Los Angeles customers aren't eligible for the state rebate available from Pacific Gas and Electric Co., which is $2.30 per watt, or $8,900 for a 3-kilowatt solar installation.
Under San Francisco's new cash subsidy, the city's PG&E customers would also receive a base subsidy of $3,000, plus an additional $1,000 if they use a San Francisco installer. Another $1,000 would be provided for customers residing in an "environmental justice district," meaning a neighborhood next to one of the city's two power plants. Solar systems cost an average of $9.99 per watt in San Francisco, meaning $29,970 for a 3-kilowatt system.
The commercial subsidy would be $1,500 per kilowatt, up to $10,000.
"There's no increase in property taxes and no increase in electricity rates to pay for this new program, which is really good news for San Franciscans," Hochschild said.
The cash incentive would be funded by city PUC renewable energy funds, which come from sale of power generated by Hetch Hetchy dam. Between $2 million and $5 million of those funds would be pledged per year for 10 years. The renewable energy funds now provide for solar installation on city buildings, a program that will continue, said PUC General Manager Susan Leal.
"It's another way to make renewable (energy) work in the city," Leal said.
The new loan program would apply not just to solar panels but also to other forms of renewable energy such as solar thermal and wind, Hochschild said.
The program's goal: Grow by 10-fold the amount of solar power produced in the city. Currently, the city produces roughly five megawatts of solar energy from solar panels placed on 666 rooftops, Ting said.
"San Francisco now ranks last among the Bay Area counties in solar watts per capita," Hochschild said. "You're going to see the volume of solar skyrocket."
nline resources
or information about solar installations in san francisco:
et involved
Interested in getting involved in San Francisco's proposed effort to offer additional cash incentives for people who install solar panels on their homes and businesses?
Contact the San Francisco Public Utilities Commission at (415) 554-3289.
Additional information about installing solar power is available at www.pge.com/solar.
The PUC and Board of Supervisors will discuss the programs at future meetings.
E-mail Charles Burress at cburress@sfchronicle.com.
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/12/11/BABGTRMNM.DTL
No comments:
Post a Comment