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Summary
First, define measurable objectives. Next, identify and implement strategies to reach the objectives.
Sample objective:
Set target energy generation goals for the private sector. For example:
By 2010 - 2 Megawatts (500 homes with 2KW systems)
By 2020 - 10 Megawatts (2,500 homes with 2KW systems)
Sample Strategies to reach objectives
Educational campaign to educate building owners of potential energy cost reduction. Provide city funded financial incentives such as:
- Property tax relief through a "Renewable Energy Exemption"
- Property Transfer Fee reduction for solar enabled homes.
- Reduced or free building permits for solar installations done by approved contractors
- Interest only loans to homeowners - principle to be paid in 5 years or when property is sold
- Additional solar specific codes added to property tax assessment rolls
My Proposal
The overall goal is to offer incentives and pay for the incentives through fees and penalties. In other words, a renewable energy program that is self funded. I propose an integrated approach that leverages multiple strategies. I think of them as "the carrot and the stick." While my ideas may not be logistically or tactically feasible, they illustrate what could be accomplished. I leave it to the experts to choose appropriate incentives and requirements to replace what I propose.
New Incentives (The carrot)
1. We should grant a property tax "Renewable Energy Exemption" to property owners (residential or commercial) who install solar panels or wind turbines tied into the grid. The exemption goes with the property - whether or not it is owner occupied - making it attractive for owners of apartment buildings and rental property. I suggest an exemption of $5 per watt. A building with a 2 KW watt system would get a $10,000 exemption. Although this would reduce the annual property tax by about $115 a year, the addition of solar panels adds value to the property and is thus offset.
a. Cost: 500 houses having 2KW systems = total property tax reduction of $57,000.
2. Selling your home? Buying a new home? Reduce the property transfer fee for homes that have solar panels installed. This could be percentage based on the amount of renewable power installed. For example, 10% reduction just for having solar plus 5% for every KW installed.
3. Establish a "city solar fund" to provide loans for solar panel installation. There are lots of possible options but I suggest something like a 50% loan with interest only payments for 5 years or until building is sold. Funding of the city solar fund could be budgeted from current city funds or from "penalties" listed below under "New Requirements (The stick)."
4. The permit for installing solar panels could be reduced or waived. Or, the permit fee could be free to the property owner but paid to the planning dept out of the "city solar fund."
New Requirements (The stick)
1. City planning code Article 1.2, Section 149 mandates that 25,000 square foot office projects must allocate 1% of the budget for public art. I propose that this be amended to say one-half percent for art and the other half percent for solar panels, wind turbines, or other renewable energy installation. In the absence of renewable energy solutions, the Ω% cost would be charged as a non-compliance fee and paid into the city solar fund.
2. All new residential construction should have solar or other renewable energy review and installation requirements as part of the permit process. If a new building is solar eligible - that is, if it is in a "solar zone" (see notes below) it must have solar panels installed or pay a fine equal to the cost of installing solar, e.g., $20,000. Fines would go to the city solar fund.
3. All new commercial construction must install grid connected solar or wind generation systems. Look at any Costco, Home Depot, or other commercial building and visualize the acres of solar panels that could generate the electricity needed to power the appliances being sold. We have a new deYoung museum, the Moscone Center expansion, the new Four Seasons hotel - all represent opportunities to generate solar power at little or no cost to the taxpayers
4. Major remodel and renovation construction projects e.g. residential projects with cost estimates exceeding $1,000,000 and business projects with cost estimates exceeding $5,000,000 should be required to incorporate renewable energy components.
5. Any home sold after Jan 1, 2010 that is in a "solar zone" and does not have solar should be charged a solar assessment on their property taxes every year until solar is installed. The solar assessments would go into the "city solar fund". (O.K. I know this won’t fly, but it could be a long term stretch goal who would have thought that smoking could be legislated?)
NOTES:
A "solar zone" would be any property lot that has continuous period of not less than x hours in the summer and y hours in the winter when the roof is not blocked by trees, buildings, hills, etc. The designation could be added to property zoning codes e.g., RH-3 could be RH-3S.
The "city solar fund" would need initial seed money but should be designed to become self-funding. Income to the fund would come from builders/owners who elect to pay fees/fines instead of incorporating solar or wind power to new construction and from the Ω of the 1% Article 1.2, Sec.149 monies collected. In the future, the amount of tax breaks, loan amounts, or penalties can be adjusted so that the "solar fund" neither loses money nor makes a profit.
In order to be manageable going forward, it would be necessary to have a field on property tax records to indicate that a property has renewable energy devices installed and the amount of power generation installed. For example, my home has SPV-2kw, or, Solar PhotoVoltaic panels rated at 2 kilowatts. This is necessary because the solar panels, (or wind turbines) stay with the house and are thus transferred whenever the property changes ownership.
My proposal is limited to renewable energy systems that are connected to the power grid. I am not including solar water heating devices or off grid generation, however that doesn’t mean that they couldn’t be added to the mix.
Finally, I have used Solar and Renewable Energy interchangeably to allow for future technologies such as wind or ???
Gretchen Cotter
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July 23rd, 2007 at 10:29 am
Put down the bong and slowly back away from the computer Gretchen.