Berkeley, California, Finances Solar Installations Through Property Taxes

In September 2008, officials in Berkeley, California, approved a financing program for solar installations and energy efficiency improvements. The program allows the City to borrow money at favorable rates and use it to finance projects on both commercial and residential buildings. The owners of those buildings will repay the loans over 20 years through an addition to their property taxes. A solar installation costing $28,077, financed in part ($22,569) by the city, with bank fees of $600 and an interest rate of 6.75%, would add about $2,089 a year to the owner’s property taxes ($182 a month) according to the city council. The program went into effect in October 2008.