San Francisco could offer loans and rebates to promote solar panels

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It doesn't seem like an ideal place to promote solar energy, but foggy San Francisco has come up with an ambitious plan to encourage businesses and homeowners to tap the sun's power for their energy needs.

The program announced Tuesday would offer companies and residents government-funded loans and rebates to offset the costs of installing solar panels, city officials said.

"There is a perception, a myth in our city, that because of our climate we are not ideally situated for solar," Mayor Gavin Newsom said. "The reality is the climate in the Bay Area, the climate in San Francisco specifically, is ideally situated for solar."

Many states, including California, offer tax credits or rebates to encourage solar power, and some small utility companies provide financing incentives.

But San Francisco's program may be the most ambitious because it couples refunds and loans, said Monique Hanis, a spokeswoman for the Washington-based Solar Energy Industries Association.

Under San Francisco's proposal, which must be approved by voters and legislators, businesses would be eligible for rebates of up to $10,000. Residents would receive $3,000 to $5,000 off the cost of installing solar panels depending on whether they use a local contractor and are working on property in a neighborhood near a power plant.

The city would underwrite the cost of the loans, which commercial and residential owners would be expected to pay back through annual tax assessments on their properties.

For a typical homeowner in San Francisco, installing a 3-kilowatt, rooftop solar electric system costs $24,000, according to Barry Cinnamon, president of the California Solar Energy Industries Association. Between a $4,000 city rebate, a similar $7,000 refund available through the state and a federal tax credit of $2,000, they would be able to get the price down to $11,000, Cinnamon said.

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