Revolving Loan Fund for Residential and Commercial Solar

By David "Dave" Meserve

Arcata once had in-house, low cost financing for solar hot water installations. It was a very successful program that could be reinstated today.

Arcata needs a program that provides low cost financing for residential solar installations. The city had such a program in the 80's, but it faded away, and now we are trying to be part of the PACE program, which allows for bond financing of a loan program that is paid back by the homeowner on property tax bills, over a term of 15 or 20 years. The PACE program is currently on hold, because mortgage holders have objected to the fact that it puts a lien on the property at a higher priority for payback than the mortgage, itself.

If the PACE program is upheld over the banks' objections, we should join it. If not, we should explore ways of financing solar installations through a revolving loan fund, administered by the city with city funds. Such a program not only increases the use of renewable energy, it also provides a stimulus for local sales of equipment and jobs for the installers.