REGION: County explores solar loan program.

Initiative could remove cost obstacle to rooftop panels

By DAVE DOWNEY - Posted: Friday, November 6, 2009 10:35 pm

Many people would love to put solar panels on the roofs of their homes and take the edge off those crazy summer air conditioning bills, if only they could afford the up-front installation cost often of thousands of dollars.

Soon, however, Riverside County residents may not have to foot that expense.

In late September, the Riverside County Board of Supervisors voted unanimously to study creating a program by which the county would provide loans to homeowners to install panels that generate electricity from the sun for use in their homes.

The county also may issue loans for home improvements that save energy and water.

At the suggestion of Supervisor John Tavaglione, the board asked its staff to explore the idea of setting up a solar loan program for the entire county, including its 26 cities.

Palm Desert already has a loan program, and Murrieta planners are looking into the idea.

Tavaglione, in a telephone interview recently, stressed that a county wide program wouldn't pre-empt any individual community from going it alone, as a recent state law authorizes both counties and cities to issue such loans. He said he just thought it would make sense for the county to administer a regional program on cities' behalf because loans are repaid over 20 years through assessments on twice-a-year property tax payments. And the county's treasurer-tax collector sends out those bills.

County spokesman Ray Smith said officials will be surveying cities to gauge their interest in a regional program.

Regardless of the scope of the county's initiative, Tavaglione said it could put a lot of people into position to install solar panels who couldn't otherwise afford them and help them save hundreds of dollars on electric bills.

"Everybody today is looking at saving their hard-earned cash,"Tavaglione said. "And this is just another way to become moreefficient."

Tavaglione said the county will check to see whether it can obtain funding for loans through the federal stimulus program, a finance corporation set up by California State Association of Counties or the private sector.

"We need to look at all options," he said.

The concept of a public loan to finance rooftop solar projects and energy- and water-efficiency upgrades is something that grew out of Assembly Bill 811 by former Assemblyman Lloyd Levine, D-Los Angeles, which was signed into law in 2008. The legislation authorized city and county loans for renewable energy and energy-efficiency projects.

Assembly Bill 474, by Assemblyman Bob Blumenfield, D-San Fernando Valley, was signed into law last month by Gov. Arnold Schwarzenegger and extends such loans to water efficiency upgrades.

The bills are a product of the state's move to curb emissions of carbon dioxide and other greenhouse gases linked to climate change.State officials have said that almost every home in the state will have to become more efficient, or obtain its electricity from green sources such as sun and wind, for California to make a serious attempt to slash emissions by a mandated 30 percent by 2020.

Many people would love to contribute to that effort and cut their utility bills in the process. But most cannot afford the expense, said Cisco DeVries, president for the Oakland firm Renewable Funding, which financed Berkeley's pioneer loan program.

"The piece that has been missing all this time is how to pay for it," DeVries said.

And he suggests the loan program is that missing piece.

Even with federal tax credits and state rebates, solar panels can cost homeowners anywhere from $25,000 to $60,000.

Wildomar retirees Richard and Sylvia Stephens, for instance,said they spent $60,000 on a ground-mounted network of solar panels they installed a year ago this month.

Sylvia Stephens said that, while the couple were able to come up with the money, they know others who simply can't.

"This would help people because of the high expense of putting it in," she said.

However, cities and counties can't help homeowners foot the expense unless they can come up with financing for making loans.

"Good luck. It's going to be tough," said John Weil, chief of staff for San Diego County Supervisor Pam Slater-Price, when told of Riverside County's initiative.

At Slater-Price's urging, the San Diego County Board of Supervisors explored a similar countywide program at the beginning of this year. The county recently had to abandon in its initial plan to obtain financing through banks.

"What we found was, banks were willing to finance, but only at their usual rates," Weil said. "And we didn't think that would be a bargain for homeowners."

Last month, the board changed direction and sought funding instead from the San Diego-based California Center for Sustainable Energy.

"Under this route, only unincorporated area residents may apply or financing," Weil said. "The cities would need to take their own action to join with CCSE. However, it could be that, if that happens, we could create one large umbrella program."

Fifteen states have passed laws authorizing renewable-energy loan programs, but there are only two umbrella programs like the one Riverside County would like to create, DeVries said.

DeVries, who is tracking the green loan trend, said both are working well. He said California's Sonoma County has issued $22million in loans to date, and Boulder County, Colo., has loaned $10million.

Just two other California counties —— Orange and San Francisco—— are close to launching programs, he said.

Still, DeVries said enthusiasm is building despite the financial obstacles. One day, he figures, such programs will be widespread and houses with solar panels will fill every block.

"Thirty years ago, nobody had curbside recycling and only 1 or 2percent of people did it," he said. "And now in this state it's law. Every city must provide curbside recycling and we're diverting half of our waste stream. Ten years from now, we may divert half o four energy use."

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