A San Benito County supervisor is working on a potential program
that would use federal stimulus funds to pay up-front costs on a
solar energy partnership while offering incentives to citizens who
install the systems.
HOLLISTER
A San Benito County supervisor is working on a potential program that would use federal stimulus funds to pay up-front costs on a solar energy partnership while offering incentives to citizens who install the systems.
Supervisor Jaime De La Cruz has been talking with the city on partnering with the county on this project.
“We are working together on how to implement this,” he said. “I hope to have a program ready within a month with cooperation from the city council and board of supervisors.”
De La Cruz came up with the idea when President Obama delegated millions of dollars for green projects and renewable energy in the stimulus plan.
“One of the concepts that President Obama wanted to do was to create new jobs – $223 million has been allocated for the State of California for the next two years,” he said.
The goal of these funds is to generate a four-level structure, De La Cruz said, which includes job creation through green jobs; reducing greenhouse gas emissions by 2020; providing alternative, renewable energy such as solar; and having ideas and tools available so to create an energy efficiency program.
De La Cruz noted how the state is set to announce its interest in creating partnerships with local communities in mid- to late July. He wants it on the board’s agenda at the first meeting next month, he said.
“There’s a lot of cost saving by following the concept of renewable energy,” he said. “It’s a wonderful concept”
In September 2008, Gov. Arnold Schwarzenegger signed Assembly Bill 811, which allowed governing bodies such as cities or counties the ability to create a low-interest loan program for property owners to purchase a solar energy system. Funding for these systems comes from a program called California First, De La Cruz said, and there will be no up-front costs to the homeowner.
“It will eliminate the up-front costs of solar energy-efficiency projects for residents in the community,” he said. “Homeowners would have to voluntarily participate, though.”
If homeowners would like to have a solar energy system installed their homes, they would have to levy their properties for up to 20 years to repay the cost of the system. If the homeowner sells the house, the system would stay with the house and the new owner would take on the remaining costs.
But there are tax benefits for those who take part.
“Any homeowner is allowed to claim a 30 percent tax credit for a qualified solar program,” De La Cruz said. “If it costs $25,000, the homeowner can deduct 30 percent of that (around $7,500) on the first tax year, all with no money down.”
The homeowner still would have to maintain a connection with PG&E, but De La Cruz said the owner would be put at a lower pay structure and energy would be put back into the power grid.
San Benito County and Hollister residents would not be the first in the region to implement a program like this. The cities of Berkeley and San Mateo have similar projects in place.
“Thus far, we have gotten a good response,” De La Cruz said. “It’s not for everyone, but it is an option.”
For more reaction on this story, see the Free Lance on Tuesday.
