There has been so much information about the property tax AB811 Solar financing program. It is hard to find out what is truly gong on. Sunpath Solar had some great information about the program specifics.
The City of San Diego is about to get $60 Million dollars (or more) for renewable energy projects starting in (around) March 2010. The $60MM will come in three installments of $20MM each. This money will be lent to homeowners (in the City of San Diego) for financing renewable energy and energy efficiency improvements. The loan will be attached to the property owner’s property tax bill and is a loan to the PROPERTY, not necessarily the individual.
Below is the most up to date info on the program and how the funding will be structured (as of 11/19/09).
The Clean Generation Program has come about by the approval of Assembly Bill 811 (AB811). This bill paves the way for the City of San Diego to offer its residents the ability to put energy efficient improvements on their homes without incurring the high-costs typically associated with these types of retrofits. The best news is that these loans are attached to the property owner’s property tax bill and are NOT subject to credit ratings or a credit report. You will not need to provide your FICO score in order to get this loan…it’s attached to your property!!
The loans will be backed by two companies, Renewable Funding LLC (RF) and North American Development Bank (NADB). RF will provide the short term, gap financing and some core admin services. NADB has guaranteed to purchase bonds from RF. The California Center for Sustainable Energy (CCSE) is providing other necessary admin services for the program.
The duration of the loans will be up to 20 years and the rates will be based on the 20-year treasury plus 2.45%. So, the current rate for these loans (as of 10/21/09) would be 6.89%.
What services will these loans cover?
There are many different retrofits and fixtures that the AB811 loans will cover…the thing to keep in mind is that all services under this program must be physically attached to the home. So, these loans will not cover, for example, energy consulting for your home…only physical retrofits or additions to your property. Here is a list of the eligible retrofits/fixtures:
- Energy Efficiency Retrofits
- Insulation
- Heating and cooling systems
- Whole house fan
- Hot water heater (tankless)
- Windows
- Pool Pumps
- Renewable Energy Fixtures
- Solar Photovoltaic (Solar PV) Installation
- Wind
- Hydrogen
- Water Efficiency Fixtures
- Drought tolerant plants
- Reclaimed water systems
- Water efficiency irrigation
So, how will the Clean Generation Program work?
This is still in the works (as to the exact steps needed), but below is a general overview:
- Find a contractor www.clarysolar.com
- Apply for financing
- Install the energy efficiency or energy fixture measures
- System test out – Part 2 of the Energy Audit
- Claim your money
With this program, getting a solar system on your home is almost a no-brainer!! Not only do you get a loan attached to your property, which doesn’t affect your credit, but you also get all of the other financial benefits from going solar. What benefits you ask??
In addition to the loan being paid for through property taxes, you will get:
- A California Solar Initiative (CSI) rebate (currently at $1.10/watt installed - click here to see what the current level is at)
- 30% Uncapped Federal Tax Credit (on the value of the system)
- If you can demonstrate a 20% efficiency improvement (from the Energy Audit above), then
- you will get an Energy Efficiency Rebate of $3000
Here are some sample numbers for you to think about (keep in mind that this is just a sample and may not reflect your exact savings or individual tax situation. Every home and homeowner will have a slightly different set of improvements and savings.):
Install a 6kw solar system on your home at ~$6.00/watt = $36,000 (sample numbers)
CSI rebate of approx. $5,694
30% Federal Tax Credit of $12,600
A 20% efficiency improvement rebate of $3000
Your total out of pocket for that tax year would be about $14,706
This will be a payment of only $110/Month.
What else do I need to know?
Well, as with any good deal there are always strings attached. Here is a rundown of the requirements:
Program Eligibility:
- Allocation will be on a first come, first served basis (get in line early)
- The property must reside in the City of San Diego
- Multifamily – four units or less
- Program Participants must do ONE of the following:
- Purchase all the equipment and materials from a point of sale within the City of San Diego; OR
- Hire installers or contractors from within the County of San Diego;
OR
- Purchase 50% of the equipment and materials from manufacturers located within the City of San Diego.
There are some areas of this program which are still being worked through. There are some future State and Federal regulations that are in the works and could be a factor (e.g., Loan to Value ratios and positive equity on the home).
As of now, the City of San Diego is targeting late March 2010 for the program to go live. If you’ve been thinking about going solar, then now may be the time to act. You can sign a contract that is executable upon the Clean Generation Program launching, but that allows you to get your CSI reservation in now. The CSI rebate will go down, but if you get your reservation in now, then you have a full year to install the system.
Call Aron Hauser at (619) 322-7953 to lock in your higher rebate today at $1.10/watt, before it drops to only $.65/watt.
Www.clarysolar.com
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