Solar PV Installation Finance!!!

AB 811 to the Rescue 

California’s innovative clean energy loan law 

• Assembly Bill 811, signed into law by Governor Schwarzenegger in 

July of 2008. It amends Chapter 29 of the 1911 Assessment Act. 

• Allows cities and counties to create AB 811 Assessment Districts, land- 

secured finance districts that provide the upfront cost of solar 

installations and energy efficient improvements through financing 

provided by the sale of Clean Energy Bonds. 

• Loans are repaid by property owners over 20 years through a new line 

item on participants’ property tax bills. 

• Program is 100% opt in.  Property tax expense remains unchanged for 

those not participating.

SB 279 to the Rescue Too 

Another AB 811 Type Program 

• Another financing option is the Special Tax Option 

through an amendment to the Mello-Roos Act.  Used for 

the Berkeley program.  Creates a special tax district. 

• Now advancing through California Legislature as SB 279 

• Available to all all local agencies in addition to cities and 

counties. 

• Repaid as line item on property tax bill, 100% opt in.

AB 811 to the Rescue 

It’s Not Just For Solar - Energy Efficiency Too 

• Energy Efficiency Improvements including HVAC, 

insulation, high performance doors and windows, energy 

star appliances all apply for same clean energy finance 

programs as solar PV and Solar hot water. 

• Some California locations will get more bang for their 

energy investment bucks through replacement of old low 

SEER rated air conditioning systems.

 

California’s innovative energy loan law 

• Eliminates all upfront costs to install solar and energy improvements 

for property owner.  Property owner’s payments fixed for 20 years. 

• No credit check or income verification is required for property 

owners in good standing. 

• AB 811 & SB 279 loans transfers to the new owner if the property is 

sold.  

• Full CSI rebates and 30% Federal income tax credit still also go to 

homeowners installing solar, other energy efficient improvements.

Isn't it AMAZING????

Who Is Using It Today? 

• Palm Desert: (Population 47,000) 

Part of City’s EIP program. 

Completed Phase 1 and 2, now in 

Phase 3.  $7.5 million granted in 

208 total loans.  88 for solar, 120 

for energy efficiency improvements.  

Most loans for high performance 

AC SEER 14 or higher 

• Berkeley: (Population 105,000) 

Small pilot program $1.5 million in 

municipal revenue bonds in 

November 2008.  Program sold out 

in nine minutes.  40 solar loans 

funded.  20 more on waiting list.

 San Diego: Working with 

SDG&E and CCSE 

Launched a pilot program in 

January 2009 focusing on 

150-300 homes. 

• Sonoma County: Launched 

Sonoma County Energy 

Independence Program in 

March 09.  All 9 cities 

enrolled.  First solar loan 

funded May 09.  $100 

million in funding available. 

First countywide program.

 San Francisco:  Mayor 

Newsom announced in March 

2009 that the city would adopt 

the Berkeley loan program and 

take it to the $20 - $30 million 

level. 

• Other California cities & 

entities now planning AB 811 

type programs: Sacramento, 

Alameda County, Roseville, 

Association of Bay Area 

Governments, Redwood Coast 

Energy Authority, Imperial 

Irrigation District

How Are They Paying For It? 

• General Fund Loans, or agency loans – 

Palm Desert and Sonoma County are 

pursuing this method 

• General Fund Bond financing, which is 

Lease Revenue Bonds but it’s still  

backstopped by the General Fund - not of 

interest to most cities. 

• Land-Secured bond financing, which does 

not put the General Fund at risk. This is the 

Special Tax or Special Assessment district.  

Bolder County, Colorado is pursing this 

mechanism 

• Private Funding which the City of Berkeley is using through Renewable Funding to 

finance their program.

What kind of financing terms? 

• Interest rates currently ranging from 7% - 

9%.  Considered too high for broad 

program success.  Needs to be 5% - 6% to 

drive widespread adoption 

• Maximum loan amount ranges to $50k but 

can go higher with approvalRepayment 

terms range from 5 - 20 years.  Longer 

payment terms result in smaller payments 

• Over $200 million in total financing 

available for AB 811 programs.

So looks like Solar becoming more and more affordable and we are heading towards a NEW, Green civilization! The Earth is definately deserves the second chance!