A Big Green Tax Cut; San Francisco Intensifies Solar Grant Efforts

San Francisco is looking to get off the grid and save money with a vast solar push

Independent solar power efforts are growing rapidly. With a number of businesses providing unique, online-coordinated installation options, individuals and small businesses are adopting the technology. And part of the new rate of adoption is thanks to local government grants.

Many cities and states give citizens large grants to bear some of the capital brunt of buying solar panels. These grants are in essence a big tax break as the consumer will typically make a good deal of money of the solar panels in their lifetime. They are the alternative energy version of the business world's small business grants.

This Tuesday, San Francisco looked to keep the good times rolling and put some green back its citizens' pockets with the approval of a massive new grant campaign. Solar panel manufacturers and installers received the news with giddy anticipation and are preparing for the new boom.

For the next ten years, citizens can get $3,000 to $6,000 in a one-time grant to install panels. Both businesses and charities are also receiving some solar love. Businesses and nonprofits can get $10,000 grants, while nonprofit affordable housing can get up to a whopping $30,000. Mayor Gavin Newsom states, "This rebate program further establishes San Francisco as America's solar energy leader and symbolizes the commitment of the city to make affordable solar power available to those who want it."

The mayor says the program should launch this July and will only cost the city $3 million yearly. He says the benefits are far reaching and go beyond just putting money back in the hands of consumers and businesses in energy cost savings. Newsom says the program will attract businesses and will grow green jobs.

If San Francisco can really pull of the green transformation it will be a significant accomplishment. In the green-savvy California, San Francisco has traditionally been somewhat of a laughing stock of the alternative energy community. The city was ranked last in the Bay Area by a recent assessment by the San Francisco Solar Task Force. Of the city's 195,000 rooftops, only 744 had solar panels, less than 1 percent.

The mayor hopes that the new efforts will panel nearly 10,000 rooftops over the decade, or roughly 5 percent of the city's rooftops. If successful, this would produce around 50 MW of power.

Lyndon Rive, CEO of installer SolarCity, whom DailyTech recently reported on, is thrilled by the effort. He anticipates the number of panels tripling and as the city's largest solar installer; he's in prime position for success. With 40 current employees his company is expanding with a "green" job training initiative in a low-income part of the city. Rive complements the new program stating, "It's simple, easy to understand, and easy to implement."

While his company offered solar leasing, he acknowledges that this strategy was not as cost effective and that most citizens couldn't afford it. Now between city, state, and federal tax credits, rebates, and grants, an average consumer who would have paid $30,000 for panels can pay a mere $6,000. Kevin Gage, sales director for San Diego-based installer Borrego Solar states, "This is just gonna spur the industry. The market was essentially shut down in San Francisco. Now a lot of companies like ours are gonna move into San Francisco."

Ironically the approval was announced the same day San Francisco utility Pacific Gas & Electric announced a 6.5 percent electricity rate hiking on surging fossil fuel costs. San Franciscan Sylvia Ventura is excited about the relief the move may provide her fellow citizens, but she's a bit fearful that the myriad of installers will confuse them. She states, "This business was done for a long time in the shadows and some installers took advantage of people being intimidated by the data, not understanding metering, wattage, and what to pay."

She and her husband Dan Barahona launched a new effort, One Block Off The Grid, which aims to use collective bargaining and other subsidies to further reduce the cost of the panels to an attractive price of "free". She says that the first 50 homeowners that sign up for the program will receive panels free of cost, thanks to the effort's clever negotiating. However, corporate partners are still in the process of being secured and the list is currently only half full.

Whether the new grant program is a glowing success or just a modest one, at the end of the day its putting money back in the hands of the hardworking tax payer. With rising energy and food costs, the consumer in San Francisco will finally get to see some light.