City Looks to Promote Solar Power Use Through Property Tax Program

Berkeley may become the first city in the nation to allow home and business owners to pay for the installation of solar energy panels through an increase in their property taxes.

Officials hope the energy generated by new solar panels will generate enough energy help the city meet its goal of reducing greenhouse gas emissions by 80 percent by 2050.

The City Council will discuss the proposal Nov. 6.

Installation of a solar panel could cost between $10,000-$20,000 for homeowners and about $1 million for business owners, said Cisco DeVries, chief of staff to Mayor Tom Bates.

DeVries, who designed the project, said the city would pay up-front for installations using bonds and loans. Property owners would repay the amount over the following 20 years through an increase in their property taxes.

The energy generated by the solar panels could power the owner’s entire house, said Neal DeSnoo, an energy program officer in the city’s Office of Energy and Sustainable Development.

“I believe the savings will justify the cost, and we will produce immediate payback,” DeSnoo said. “In effect, you are paying for 13 to 20 years of electricity.”

DeVries said he believes that if the program is fully implemented over the next 10 years, it could reduce greenhouse gas emissions by 6,430 tons.

The solar power system would increase a property’s value, he said.

The proposal was modeled after a project in which homeowners in the city allowed the cost of new utilities to be included in their property taxes.

City Councilmember Gordon Wozniak said he views the solar panels as a plausible way to help meet the city’s greenhouse gas reduction goal.

“We only have 400 solar insulation systems installed now and can do a whole lot better,” he said.

Homeowners had a mixed response to the proposal. Willard Neighbourhood Association President Vincent Casalaina says that it is a good idea, but does not apply to many residents who rent rather than own property.

“People have an interest in going solar,” Casalaina said. “But this project will not affect 40 percent of the residents in our community who live in apartments.”

Sara Shumer, a homeowner and member of the Public Works Commisson, said she favors the project.

“We need to move rapidly away from carbon fuel and the community should support this,” she said.

DeVries said many landowners would participate because money would be borrowed at low interest rates and costs would be spread out. The tax would also be transferable to the next owner of the property.

“It’s for the good of Berkeley and beyond ... and could move solar energy to the mainstream,” he said.

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