Company Offers Innovative Solar Financing

Photo: Ivars Zolnerovichs / istock

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COMMUNITY NEWS

Renewable Funding is now providing a first-in-the-nation financial service allowing property owners to install solar panels and pay for them over 20 years through a voluntary line item on their property tax bills.

The company provides a complete financing and administration package to cities interested in offering this financial product to property owners. The City of Berkeley selected Renewable Funding to finance and administer its nationally recognized new solar and energy efficiency program.

This innovative financing program, known as CityFIRST, overcomes the principal obstacle that has hindered widespread adoption of solar and energy efficiency projects by homeowners and small businesses - the daunting upfront cost. With CityFIRST, owners can afford to install solar installations and major energy efficiency projects and pay for them over 20 years. If the property is subsequently sold, the repayment obligation transfer to the new owner.

How it Works: Cities set up a financing district much like they do to pay for undergrounding utilities, sewer lines, or other improvements. Renewable Funding provides complete education and information to city residents, handles all applications and property screening, and conducts a unique bond transaction with the City to provide funds on demand to property owners. Property owners choose any installer or contractor and pay for the property tax increment out of utility bill savings.

CityFIRST is quickly gaining steam as a pillar of government and community based efforts to reduce energy costs and greenhouse gas emissions. Both California and Colorado have passed new state laws enabling any city or county to implement the CityFIRST program. Dozens of cities have announced an interest in replicating the program.

The program has received significant national and international media coverage. The UK's Guardian newspaper called it "a compelling model for future clean energy policy on a nationwide scale." A San Jose Mercury News business columnist said it is "a national model for how local governments can help fight global warming and save residents money." The New York Times said this new method of financing is being "watched by other cities around the country."

"The CityFIRST program eliminates the most significant roadblock to widespread adoption of solar and energy efficiency. It turns a large upfront capital cost into small incremental payments. I expect hundreds of cities will quickly move to adopt this program," said Professor Daniel Kammen, Director of the Renewable and Appropriate Energy Laboratory at UC Berkeley and an advisor to Renewable Funding. Kammen recently highlighted the CityFIRST program in testimony before the U.S. Congress.

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