Solar Municipal Property Tax Financing
In solar, innovations in financing are as important as innovations in technology. The city of Berkeley has pioneered a new approach to municipal financing, known as the “FIRST model,” to help homeowners go solar without paying high upfront costs.
With leadership from Speaker Nancy Pelosi and support from Vote Solar, the feds recently clarified that businesses and individuals who participate in these municipal programs also qualify for the full amount of the solar tax credit. This is good news for other cities that want to implement the model, and we’re already seeing interest spread around the country.
We’ve compiled some resources so you can try this at home . . .
For solar advocates:
Vote Solar prepared a paper describing the FIRST model, noting benefits, potential pitfalls, and best practices for implementing this option in communities across America. Find it here (pdf)
Legislation will be required in most states to authorize municipalities to offer FIRST-styled tax-assessment based finance options. We are working with advocates and legislators in eight states and counting (AZ, CA, MD, MI, NM, NV, TX, WI) to advance such legislation. We’ll need your help to make our voices heard - expect to see action alerts soon.
Interested in advancing this type of legislation in your state? Send Annie Carmichael an email at annie@votesolar.org.
For city leaders:
Already familiar with the model? If you’re ready for the next step and want a draft an RFP for getting an independent administrator for the program, well, you are in luck. Click here (pdf).
Note this finance model can- and we believe should- be used to finance a host of technologies: solar PV systems, solar hot water systems, energy efficiency installations, and even water conservation upgrades.
Want to learn even more?
Law students under the guidance of Wilson Sonsini Goodrich and Rosati, a top notch law firm providing generous pro bono support to Vote Solar, prepared an analysis of the authority of municipal governments to implement similar programs in some key states. Find it here (pdf).
The City of Berkeley has posted many of their relevant documents (as well as questions and answers) here. Click here to learn about the launching of the Berkeley FIRST pilot program.