Berkeley may become the first city in the nation to allow residential and commercial property owners to pay for the installation of solar photovoltaic panels through an increase in their property taxes. The purpose of the program is to make it easier for property owners to generate solar power without having to put money up front to cover the high installation costs. Officials are banking on the program to help Berkeley meet its goal of reducing greenhouse gas emissions by 80 percent by 2050.
Under the program, the city would pay the upfront cost of installing solar panels to a home or business. The owner would pay it back over 20 years as an add-on to property taxes. Property owners would be charged interest and a one-time administrative fee. If the property is sold prior to the end of the repayment period, the property tax assessment would be passed on to the new owner. The City would pay for the installations using bonds and loans.
Currently, there are 400 residential solar panel systems in Berkeley. Officials estimate they cost from $10,000-$20,000. The Mayor hopes the number of solar installations will climb into the thousands with the new program.
The Berkeley City Council will consider the proposal November 6.
If this financing program works, it could be a model for Springfield and other communities to replicate as a creative way to overcome one of the biggest hurdles to getting solar panels.