San Francisco and Berkeley both have groundbreaking solar incentive programs. San Francisco went first with a cash incentive for installing solar energy… something I followed extremely closely over it’s gestation. Berkeley decided to take another route and to finance residential solar installs using additions to the homes’ property tax bill over 20 years. I didn’t follow this as closely because it seemed to me that it was doomed from the start for one simple reason: It didn’t jibe with the federal investment tax credit.

The tax credit, or ITC, can only be applied if the solar financing is “at risk.” Financing through an addition to property taxes - an addition that transfers with the property when it is sold, didn’t sound “at risk.” (again, I’m no tax attorney.)  I wasn’t sure about this, but it boggled my mind that seemingly, this was working it’s way through city government all the way without being addressed.

I did come across some diagrams trying to show it was still a valid option because the interest rate was lower and that counteracted the $2000 credit, but last I heard the interest rate was quite high, and the federal tax incentive has increased dramatically, making it impossible to overcome even if there were no interest.

It looks like this is further confirmed by a recent call to action on Vote Solar requesting that its readers pressure congress to tweak the ITC with these proposed changes:

First, eliminate the barrier to utilizing the Federal Energy Tax Credit. The federal government now provides a 30% Energy Tax Credit for the installation of specified energy projects. Expenditures are not considered eligible for purposes of calculating the Energy Tax Credit if the related improvements were financed by “subsidized energy financing” or tax‐exempt bonds. Legislation can clarify that this type of renewable and energy efficiency financing program does not adversely impact the availability of the Energy Tax Credit regardless of its structure.

Second, allow the use of federally tax exempt bonds to finance the program. The revenue bonds supporting this program cannot take advantage of the federal tax exemption normally available to local government because the renewable energy and energy efficiency projects financed by bonds are made to private property and the bonds are payable from private loan payments made by participating property owners. This makes the program much less cost‐effective for property owners. Given the requirement that we quickly address energy security and climate change, Congress can amend the code to recognize that bonds issued to finance renewable energy and energy efficiency improvements to private property are governmental bonds the interest on which may be tax‐exempt.

If they can get this thing to play nice with the ITC, it could have a drastic positive impact on the number of solar installations the US.  Please visit Vote Solar to contact your representative when you have some free time.  They make it very easy for you to do.

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This is how real changes gets made. People showing that something’s real and it’s here and now.

If you want a sign let me know and I’ll either drive one over or mail you one.

-Dave

“Dear colleagues, friends and clients,

As you may already know, ***** and I have become solar fanatics - and are trying to get everyone we know on the bandwagon! Our own photovoltaic (electric generating) system has been up and running for two months now and has working great. Our own system is leased from our vendor — keeping our initial costs very low — but we recently heard about an organization that is set up to optain low pricing for purchased systems by using the collective bargaining power of large groups of participants.

With the unlikely name of 1BOG (for “one block off the grid”), it is a bargaining collective founded by a San Francisco couple after they struggled through installing their own photovoltaic system. They were doing tons of research trying to understand the different options and the technical aspects of photovoltaic systems and determined to make that information available to others, setting up an information website, www.solar4SF.org , to do so.

But then they realized the other major stumbling block stopping people from setting up these systems was financial - even with government subsidies the prices were too high. So their next idea was to set up a bargaining collective - a way of helping people deal collectively with multiple solar vendors to elicit the best pricing and service. That system can be seen at: www.1bog.org . We recently received the email below from 1BOG regarding their current round of price bargaining with solar vendors. We urge you to check them out and seriously consider getting a system!”

www.1bog.org

I sometimes hear people say, “solar doesn’t work here, it’s too cloudy,” or even, “it’s too cold.” Did you know that solar panels actually like the cold?  It makes them more efficient.  They also produce energy while overcast.

Others have heard that even the slightest amount of shading is a dealbreaker.   In that case, there are so many nuances to solar shading even the most educated consumer would probably need the tools of a pro to be sure what the impact was.

… So what Dave, what’s your point?

If you’ve thought about solar for your home, go ahead and get checked out.  It doesn’t cost anything, and it gives the pros a chance to dispell any myths or misconceptions, or provide creative solutions that you may not have known existed.

Sure it may just end up being a few minutes over the phone with a guy looking at satelite photos of your place, before you either realize it’s out of your budget or you realize that giant redwood is in fact, a dealbreaker… and you’re not cutting it down.

But who knows, maybe you didn’t know that leasing could be an option, or you’re surprised by how much energy it actually produces… either way, at least you’ll know.

What makes this possible? 1BOG recently joined forces with Virgance, an exciting group of incredibly smart folks who have figured out ways to scale new activism ideas like 1BOG by using the power of online social networks, turning each idea into a large-scale, citizen-powered global campaign. Virgance’s work has a consistent common thread: positive change.  Take a look at their site and get familiar with the other social activism campaigns in the works like Carrotmob, Lend Me Some Sugar, and GreenFund.  We are still young, but we’re growing fast so keep an eye out for more big news coming soon!

These are very exciting, dynamic times. Let’s work together to get this country on the fast track to energy independence and clean living!

Sylvia

Sylvia@1bog.org

2007 Total System Power in Gigawatt Hours

*Note: In earlier years the in-state coal number included coal fired power plants owned by California utilities

Source: gosolarcalifornia.ca.gov

If you click “more about author”:

“A video of Real Marin Solar installing panels on my roof. With all the rebates (thanks to the bailout) and 1bog.org I am getting pretty mush a free solar panel system.”

From the article:

” Here’s how it works:

– 1BOG invites people to become a member by signing up through its online registry. Joining 1BOG is free; members are under no obligation to buy a system and are forwarded to an installer only if they want to proceed.

– It requests data from its members: What is their electrical usage; how big a system do they require?

– It initiates a competitive bidding process to, as Ventura said in an e-mail, ensure the “best overall pricing, terms and services” for its members. “We negotiate pricing based on numbers of registrants,” Ventura said in the e-mail. “The bigger the group, the larger the savings.”

– Once 1BOG signs up a solar firm, it puts its members in touch with the solar installer. The installer then does an on-site evaluation of each home, and that’s it. The work of 1BOG is done.”