|
|
|
|
|
|
|
|
|
|
|
Berkeley FIRST Financing Initiative for Renewable and Solar Technology *** Frequently Asked Questions
Notice:
This information is provided to help answer common questions about
the Berkeley FIRST program. Program
details and timelines are still in development and therefore the
information contained in here is subject to modification at any time. The ultimate details of the program will not be fully
known until it is pilot tested. How does this program work? Berkeley
FIRST is a program in development by the City of Berkeley.
It is being designed to allow property owners (residential and
commercial) to install electric and thermal solar systems and make energy
efficiency improvements to their buildings and pay for the cost over 20
–years through an annual special tax on their property tax bills.
No property owner would pay the special tax unless they had work
done on their property as part of the program.
Those who do have work done on their property would pay only for
the cost of their project (including interest) and fees to administer the
program. Individual property
owners would contract directly with qualified private solar installers and
contractors for energy efficiency and solar projects on their building.
The City would provide the funding for the project from a bond or
loan fund that it repays through assessments on participating property
owners’ tax bills for 20 years. What are the advantages of
Berkeley FIRST? While Berkeley FIRST may not be
the best option for all property owners, the program is being designed to
address many of the financial hurdles that are dissuading some people from
undertaking major energy projects. First,
there would be little upfront cost to the property owner.
Second, the upfront capital costs would be repaid through a
voluntary tax on the property, thereby avoiding any direct effect on the
property owner's credit. Third,
the total cost of the solar energy system and energy improvements should
be comparable to financing through a traditional equity line or mortgage
refinancing because the well-secured bond will provide lower interest
rates than are commercially available. Fourth, the obligation to pay the tax transfers with the
property. Therefore, if you
sell your property prior to the end of the 20-year repayment period, the
next owner takes over repayment as part of their property tax bill. If I participate, can I still
get all the tax deductions, credits, and rebates available? Participants are eligible for the
California Solar Initiative rebate program. We are still examining the
details of participants’ eligibility for the federal tax credit.
In addition, we are examining what portions of the assessment will
be deductible on your federal and state income taxes. While we plan to give advisory information, each
participant will need to consult an accountant or the IRS to determine
their personal income tax deductions. Will you include energy
efficiency in Berkeley FIRST? The cheapest and easiest way to
reduce your energy bill is to improve the efficiency of your property.
Our goal is to allow property owners to do major energy efficiency
projects as part of Berkeley FIRST, though funding for energy efficiency
upgrades will likely not be available in the pilot phase of the project. What is the timeline for
launching Berkeley FIRST? We plan to launch a pilot phase of
Berkeley FIRST in mid-2008. This
smaller scale test will allow the City to iron out any issues before we
expand it. Assuming all goes
well, and funding continues to be available at reasonable cost, the
program would be expanded. Are there limits to the number
of people who can participate? We do plan to limit the pilot
phase to test the program. No
final determination has been made on the appropriate scale of the full
program, though our goal is to have it accommodate all applicants. Should I wait for this program
to install solar? No.
State rebates will likely be reduced before the launch of this
program. If you were planning on going solar already, please do not wait
for Berkeley FIRST. I am a property owner and would
like to participate. Where do
I sign up? There is no wait list or sign-up
at this time. You can send us
an email to get on the list for updates as the program is developed.
Please send the email to measureg@ci.berkeley.ca.us. I am a solar installer or
contractor and would like to participate.
What is the process? There is no wait list or sign-up
for installers at this time. You
can send us an email to get on the list for updates as the program is
developed. Please send the email to measureg@ci.berkeley.ca.us.
There will be workshops on the program hosted by the City and Build
it Green. I
don’t live in Berkeley, can my city do this too? Under current law, a California city must be a “charter city” to implement a program like Berkeley FIRST. All cities in California are either a general law city or a charter city. As a charter city, the City has power over municipal affairs when the subject matter has not been preempted by State law. In California, 108 out of 478 cities are charter cities. Legislation has been introduced to amend State law to allow all cities to create this program. Berkeley has committed to do a replication guide for other cities after our pilot phase is completed. (Updated February 27, 2008) |
|
City of Berkeley Home / Departments / Mayor Home
|
