California Real Estate Journal
June 29, 2009

    California cities and counties are finding out that some local residents are willing to take on an additional tax to pay for solar panel installations on their homes and businesses.

    Legislation last year made it possible for all municipalities in the state to form special assessment districts to fund renewable-energy projects and energy-efficiency upgrades on private properties. As a handful of cities and counties have made funding available, homeowners and a few commercial building owners quickly volunteered to participate in local programs.   

    Gov. Arnold Schwarzenegger signed Assembly Bill 811 into law on July 21. AB811 gives municipalities the ability to form special assessment districts in which individual property owners borrow money from their local government to install renewable-energy equipment, such as solar panels, or make other energy-efficiency improvements to homes or commercial buildings. 
    ...
    So far, about 80 California cities and counties have expressed interest in the statewide program. DeVries said the financing mechanism is in the final stages of development, so cities and counties may be able to join the program in the summer or early fall, making loans to homeowners and commercial property owners by early next year.

    Warren Diven, partner in the public finance group at Best Best & Krieger LLP in San Diego, has been working with the Western Riverside Council of Governments, which is looking at putting together a solar assessment district for all of its member cities.

    "There are a couple of things that might prove to be challenges," Diven said. "For smaller cities, adopting an AB811 program can be expensive in terms of staff involvement and costs if they were trying to do it on their own."

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