Sustainable energy financing districts offer commercial building owners and homeowners low-interest loans for energy-efficiency projects _ a creative way for owners to finance solar, wind or geothermal energy upgrades to their properties and for cities or counties to meet their mandated need to reduce greenhouse gases and be energy independent.

More than a year ago, California passed Assembly Bill 811, giving all municipalities and counties in the state the ability to offer low-interest loans for energy-efficiency projects and solar panels to homeowners and commercial property owners secured by contract assessments levied on the owners’ properties.

The bill helps close the gap between the willingness of property owners to retrofit their buildings or homes and their ability to afford such upgrades. Owners borrow money from a city or county participating in a contract assessment program to pay for their energy-efficient products, and the long-term payment of the loans is linked to owners' property tax.

A participating municipality or county may issue bonds secured by the contract assessments to raise money for the loans, access general and redevelopment funds, or otherwise raise capital.