"... 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... 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... 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..."

The New York Times | Harnessing the Sun, With Help From Cities | By LESLIE KAUFMAN | March 14, 2009


"...the financing technique that gave Europe an early lead in renewable energy is starting to cross the Atlantic... the idea is to pay homeowners and businesses top dollar for producing green energy... The new payment method is referred to as a “feed-in tariff” in Europe... a mandate by the government telling a utility to pay above-market rates for green electricity. It shifts the burden of subsidizing green energy from taxpayers, as is common in the United States, to electricity ratepayers... despite generous state and federal incentives, the United States still lags far behind Europe in solar power... Wind power and other sources of renewable energy are generally included in the European payment systems... Generating power from the sun using rooftop panels can cost four times as much as coal... If a utility commits to paying a higher rate for renewable power over a period of years, it can offer those with solar panels or wind turbines a steady return that helps defray the initial cost of the equipment... For now, at least, solar-power advocates do not believe they have the votes in Congress to adopt a national feed-in tariff system..."

The New York Times | Europe’s Way of Encouraging Solar Power Arrives in the U.S. | By KATE GALBRAITH | March 12, 2009