New Ohio Law Helps Boost Residential Solar
Thanks to a new Ohio law, loan assistance is now availalbe to homeowners seeking to install solar electric or solar hot water systems.
The upfront cost of solar systems has continued to be a barrier for many people in Ohio. As a result of an initiative by the city of Athens, Ohio, the state legislature has passed a law enabling municipalities (defined as cities and townships) to provide special loan assistance to homeowners seeking to install solar electric or solar hot water systems. These loans—in conjunction with already existing incentives—can significantly reduce (and even eliminate) the upfront cost. The law then empowers municipalities to recover these loan amounts over an extended period (up to 25 years) through a special assessment added to the resident’s annual tax payment.
"The inclusion of the financing program for solar energy will allow more people to enjoy the benefits of clean, renewable resources that would have otherwise been financially out of reach. The opportunity to make solar energy more readily available will help Ohioans create more reliable electricity for themselves and save money in the long run," said Ohio Consumers’ Counsel Janine Migden-Ostrander.
Once a solar system starts to produce either electricity or hot water, there is a potential for electric and/or gas bills to become significantly reduced. An exciting aspect of the new state law is that money which would otherwise be used to pay these energy bills would instead become available to pay off the loan.
Athens will use a "revolving loan fund" which takes an initial seed grant and uses it to finance the first wave of residential solar systems. As those loans are replenished, the same money becomes recycled into further solar projects. So the program is self-perpetuating. For example, if an individual is able to pay for 60 percent of a $30,000 system with grants and tax credits, Athens would pay the remaining $12,000. The homeowner could then repay Athens with $480 annual assessments over the next 25 years.
As this type of funding has been successful in reducing upfront costs in other states like California and Colorado, proponents believe it can also be a "game-changer" here in Ohio in terms of affordability. Greater access to residential solar systems in turn leads to higher demand for installers and the creation of more green jobs. This program is a triple win. It is a win for homeowners with modest incomes who wish to go solar; it is a win for the Ohio economy, and it is a win for the planet. Athens intends to be a pilot city and pioneer the implementation of this ground-breaking program.
Gary "Spruce" Houser worked as a City Council Aide for the city of Athens while helping to develop this project, now known as the Athens Solar Initiative. For more information, email Gary at mountainmist8 at yahoo.com.