Agenda - Planning Commission - 05/07/2009

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installed in suburban communities and bigger cities. Overthe last few years, the states of New"jersey, Nevada, and Colorado significantly increased I"V generation because of state re- quirements for major utilities to include greater percentages of solar in their portfolios and rebate programs for commercial and residential buildings. Many local governments now have renew- able energy loan programs, and the numbers are expected to increase as more utilities and cities implement programs as part of their over- all climate change plans. The~e programs typi- cally have loan repaymenttimes of between 10 and 30 years, through utility bill savings or property tax bills. INCENTIVES FOR INSTALLATION Examples of loan programs that provide finan. cial incentives to lower the upfront costfor the installation of renewable energy systems, particularly solar, are briefly highlighted below. A comprehensive listing of incentive programs can befound through the Database of State ini- tiatives for Renewables and Efficiency (DSIRE), a website developed by North Carolina state University. New Yorlc The'NewYorkState Energy Resource and Devel- opment Authority offers the Energy Smart Loan Fund program, which provides an interest rate reduction off a participating lender's normal ioan'interest rate for a term up to 10 years on certain energy-efficiency improvements or renewable technology loans. The interest rate reduction for niost of the state isup to four percent. Utility customers may be eligible to receive an interest rate reduction up to 6.5 percent off a participating lender's normal mar- k~t rate. This program is funded by utility rates' through a special benefits charge. Local Leaders Berkeley, California, has recently established a Sustainable Energy Financing District that leverages private financing through bonds that fund solar photovoltaic systems for residential and commercial properties anywhere in the city. The bonds are repaid by a special tax that is added to the property tax bill of the partici. pating property owner. While still in a small pi- lot phase of 40 installations, the program could allow up to 4,000 installations if expanded to the total bonding authority of $80 million. Boulder County in Colorado and the cities of San Diego and San Francisco are in the process of developing similar financing programs. Palm Desert, California, has issued $2.5 million in solar energy and energy efficiency loans through contractual assessments on properties. This is one of few cities that has used its general fund surplus to finance private . energy improvements. The city will earn seven 250 200 150 u c S :;: 100 50 199B 1999 2000 2001 2002 percent interest on its investm ent for the 20-year assessment term. Florida has at least two programs that .provide financing', Tallahassee, through its municipal utility, offers loans of up to $20,000 at five percent interest to install solar photov'ol. taic systems. The Orlando Utilities Commission also has a loan program for its customers and will provide up to $15,000, which can be repaid through monthly utility bills with interest rates from two percent to 5.5 percent. STATE AND LOCAL SOLAR ACCESS PROTECTIONS The development of rights to solar access has basis in English common law. A judi~ially established doctrine of "ancient lights" pro- vides that if a landowner had received sunlight across adjoining property for a specified period of time , the landowner was entitled to continue to receive unobstructed access to sunlightac- cess across the adjoining property. The first state laws that specifically addressed access for operation of solar energy equipment were lnt..rd:>tt:l J;I",""",,;.hl.. 1=1'1""""'" rnlln,.il ffhl"ln.ll sNorr.Residential a Residential 2003 2004 200B 2007 ZONINGPRACTlCE 4.09 AMERICAN PlANNING ASSOCIATION Ipage 3 5'7