The Assembly today passed legislation that has the potential to jump-start the solar industry in New Jersey, even if it doesn’t go nearly far enough.
Here is a description of the bill — sponsored by local legislators Linda Greenstein and Bonnie Watson-Coleman — from a Democratic majority release:
The measure (A-1558) would require a developer of a residential development of 25 or more units to offer to install a solar energy system when a prospective owner enters into negotiations, provided installation of such a system is technically feasible as determined by the Department of Community Affairs in consultation with the Board of Public Utilities.
“We must reduce our reliance on increasingly expensive fossil fuels by making use of renewable energy resources that can save consumers money and ensure our precious natural resources,” said Watson Coleman (D-Mercer). “By using solar energy for heat and electricity we can significantly reduce the emission of dangerous greenhouse gases.”
True. But what about subsidies and incentives for those of us in older housing, which is far less energy efficient? I know the state is basically broke, but interest-free loans (and grants to low-income homeowners) for conversion to alternate fuels, for conservation measures, etc.? Consider how much energy we might save if we could upgrade some of the older housing in Trenton and how much money those homeowners could save?
California and several other states already are doing some innovative things, including allowing towns to help homeowners by using special assessments:
The goal behind municipal financing is to eliminate perhaps the largest disincentive to installing solar power systems: the enormous initial cost. Although private financing is available through solar companies, homeowners often balk because they worry that they will not stay in the house long enough to have the investment — which runs about $48,000 for an average home and tens of thousands of dollars more for a larger home in a hot climate — pay off.
But cities like Palm Desert lobbied to change state laws so that solar power systems could be financed like gas lines or water lines, covered by a loan from the city and secured by property taxes. The advantage of this system over private borrowing is that any local homeowners are eligible (not just those with good credit), and the obligation to pay the loan attaches to the house and would pass to any future buyers.
The idea of public financing for home solar systems began two years ago in Berkeley. While it took months to untangle the legislative knots at the state level and get banks lined up to back the project, the concept took on a life of it own.
Cisco DeVries, who developed the program for Berkeley but has since moved on to a company that administers and finances similar programs for many towns, said: “I’ve never been part of something like this where the power of an idea has grabbed so many people so quickly. It is viral.”
In California, about a half-dozen cities including San Francisco and San Diego are already committed to their own solar programs. And outside of California, at least a half-dozen states, including Arizona, Texas and Virginia, have introduced bills to allow municipal financing. Colorado has already passed a version of the law, and the City of Boulder is on the verge of beginning a program.
Municipal financing comes on top of other government supports. California residents receive a straight rebate for about 20 percent of the cost of a solar power system. In addition, a federal income tax credit for 30 percent of the cost of installing solar panels was extended to participants in the municipal loan programs as part of the economic stimulus bill passed by Congress. And there are efforts to change the federal tax code further so that cities can borrow the money to lend tax free.
There are critics who say such a solar plan is not cost-effective, that we should focus on efficiency — but that’s too small-bore given the problems we face (both in terms of energy use and cost). We have to find ways to do both.
Hank Kalet 