But it’s not just a simple metaphor! This “staircase” is actually based on a state-run program to encourage homeowners in certain areas of California to go solar.  The program, called the California Solar Initiative, helps to pay for part of the cost of putting a solar electric system on your roof in California.  Over time and as more homeowners adopt solar, the state program pays less and less of the system cost, because it assumes that solar, with greater market demand and time, will become cost competitive with standard utilities and need fewer subsidies.  In short, the state program pays less of the system cost as more people in your region go solar.

Here’s where the staircase idea comes in: the systematic reduction in rebates is broken into 10 trigger points, or “steps.” The higher you go up these steps, the more solar you and your neighbors have installed, but the less of the system cost the state will reimburse.

So, while being at step 4 may be a bit embarrassing for your pride, it means that you, Orange County and Inland Empire residents, get a whopping 30% of your system cost paid for in the form of a state rebate ($1.90 per solar electric watt, or about $10,000 for an average system).  SCE customers in SoCal, dust off your pride and seize the solar moment: Take advantage of both the big state solar rebate and 1BOG’s group discount in your area.  You may seem behind, but, in some ways, you’re really ahead.  And, c’mon, do you really want to let cloudy NorCal kick your sunny SoCal butt in the solar game?

Photo Credit

Homeowners interested in accessing these funds are likely to need an energy audit to identify the most energy and money saving projects. That’s why 1BOG is expanding its team to support our members who are interested in learning more about energy audits and the GreenFinanceSF program:

1.  We have set up a website, http://sfenergyaudit.org – a comprehensive resource for information about energy efficiency and PACE.
2.  We have hired local expert Lilly as Energy Efficiency Adviser to answer all 1BOG members’ questions about energy home improvements and what they mean to you.

Of course, we’ve also got a group discount for energy efficiency services that we’ll be announcing in the coming weeks.

If you have questions about GreenFinanceSF or energy efficiency, please visit http://sfenergyaudit.org or call Lilly directly on the energy efficiency hotline – 415 992-7540. She’s ready to take your calls!

Our New Jersey installer partner, The Solar Center, is working with us to ensure that all 1BOG customers can get this rebate while it lasts.  They will be expediting the rebate applications as soon as a contract is signed in order to get 1BOGers in under the impending deadline.

“The solar rebates in New Jersey have been a fantastic incentive for homeowners considering solar,” said Ed Steins, CEO of The Solar Center. “The fact that we are nearing 20 MW of solar projects shows that residents are embracing solar as a way to conserve energy and save money.  We hope we can help as many 1BOG customers as possible take advantage of the current rebate before it goes down.”

For all the New Jersey 1BOGers who are considering solar, now is the time to act while the best rebate is still available!

Though I’ve been working for Virgance (1BOG’s parent company) for some time now, I’ve just started working with the 1BOG team, and my first project is launching the Sonoma County campaign.

Why Sonoma? Why now?
Because Sonoma County recently announced $100 million in municipal solar financing for home energy improvements, like solar panels!

This “property tax” solar financing option means that Sonoma homeowners can invest in home energy improvements without paying huge up front costs. The loans will be paid back over time through additional property taxes to the homeowner (not the whole county), and will stick with the house even if you sell it.

Programs like this are starting to pop up all over the country, and 1BOG is keeping track of all of them. See if your city has municipal financing for solar.

So basically, this is a great time to go solar in Sonoma County, and 1BOG wants to contribute to the effort. Homeowners need a bid from an installer before they can begin applying for this municipal financing, and 1BOG is the easiest way to get one for solar!

1BOG Solar Financing powered by SunRun

You told us that removing the out-of-pocket cost of going solar was important to you, and we listened. 1BOG has partnered with SunRun to offer financing for our 1BOG participants. We will also be working to bring you all financing options that make sense and help create the tipping point for residential solar energy. Getting people together in a group and making the buying process painless is a big part of this. Making it easy to afford solar energy for your home in this economy is the other.

All the details on solar energy financing can be found at solarfinancing.1bog.org.

There is information on PPAs, Solar Leases, Municipal Solar Financing (the property financing for solar), and traditional home equity.

Thanks!

Update 2/10/09:  Looks like the Berkeley First program got the attention it needs on the Federal Level to make it scale.  Check the bottom of this post.

San Francisco and Berkeley both have groundbreaking solar incentive programs. San Francisco went first with a cash incentive for installing solar energy… something I followed extremely closely over it’s gestation. Berkeley decided to take another route and to finance residential solar installs using additions to the homes’ property tax bill over 20 years. I didn’t follow this as closely because it seemed to me that it was doomed from the start for one simple reason: It didn’t jibe with the federal investment tax credit.

The tax credit, or ITC, can only be applied if the solar financing is “at risk.” Financing through an addition to property taxes – an addition that transfers with the property when it is sold, didn’t sound “at risk.” (again, I’m no tax attorney.)  I wasn’t sure about this, but it boggled my mind that seemingly, this was working it’s way through city government all the way without being addressed.

I did come across some diagrams trying to show it was still a valid option because the interest rate was lower and that counteracted the $2000 credit, but last I heard the interest rate was quite high, and the federal tax incentive has increased dramatically, making it impossible to overcome even if there were no interest.

It looks like this is further confirmed by a recent call to action on Vote Solar requesting that its readers pressure congress to tweak the ITC with these proposed changes:

First, eliminate the barrier to utilizing the Federal Energy Tax Credit. The federal government now provides a 30% Energy Tax Credit for the installation of specified energy projects. Expenditures are not considered eligible for purposes of calculating the Energy Tax Credit if the related improvements were financed by “subsidized energy financing” or tax‐exempt bonds. Legislation can clarify that this type of renewable and energy efficiency financing program does not adversely impact the availability of the Energy Tax Credit regardless of its structure.

Second, allow the use of federally tax exempt bonds to finance the program. The revenue bonds supporting this program cannot take advantage of the federal tax exemption normally available to local government because the renewable energy and energy efficiency projects financed by bonds are made to private property and the bonds are payable from private loan payments made by participating property owners. This makes the program much less cost‐effective for property owners. Given the requirement that we quickly address energy security and climate change, Congress can amend the code to recognize that bonds issued to finance renewable energy and energy efficiency improvements to private property are governmental bonds the interest on which may be tax‐exempt.

If they can get this thing to play nice with the ITC, it could have a drastic positive impact on the number of solar installations the US.  Please visit Vote Solar to contact your representative when you have some free time.  They make it very easy for you to do.