Feasibility study grant awarded to BED by American Public Power Association to study Berkeley/AB 811 model
October 17, 2008
By Candace Page
Free Press Staff Writer
By Candace Page
Free Press Staff Writer
Contact Candace Page at 660-1865 or cpage@bfp.burlingtonfreepress.com.
Burlington Electric Department is considering an innovative way to jump-start a fresh round of energy efficiency and renewable energy projects among city homeowners.
The concept goes like this: The city would issue bonds to raise a pool of money that could be lent to homeowners to install solar power or other energy measures.
Homeowners would repay the money over 20 years, through an additional payment on their property tax bills.
The idea is attractive because many home alternative energy projects have a high initial cost and require big, unaffordable monthly payments if they must be paid off in five years through a standard home-improvement loan. With 20 years to pay off the loan, homeowners might save more money on their energy bills than the cost of their city loan payments.
And, if the property were sold, the new owner would gain the benefits of the energy projects, as well as taking over payment for them.
"What makes this really exciting is the ability to finance over a longer period of time," Mayor Bob Kiss said Thursday.
Burlington Electric announced earlier in the day that it won a $34,000 grant from the American Public Power Association for a feasibility study. The study will be subcontracted to the Vermont Energy Investment Corp.
BED spokeswoman Mary Sullivan said if analysis shows the idea is viable, BED and the city would proceed cautiously.
"We'd like to start a pilot project in a year or so," she said.
BED has set a goal of obtaining all its electricity from renewable sources by 2012. Reducing electric demand from its customers could help meet that goal. The city's efforts to reduce Burlington's carbon footprint would also benefit.
The utility's proposal is based on a new program in Berkeley, Calif. City government in September created a special, citywide tax district, the Sustainable Energy Financing District.
The district allows property owners to borrow money to install solar electric panels and to pay for the improvements over 20 years through a special tax levy on their property bills. The tax is paid only by property owners who choose to participate.
The concept goes like this: The city would issue bonds to raise a pool of money that could be lent to homeowners to install solar power or other energy measures.
Homeowners would repay the money over 20 years, through an additional payment on their property tax bills.
The idea is attractive because many home alternative energy projects have a high initial cost and require big, unaffordable monthly payments if they must be paid off in five years through a standard home-improvement loan. With 20 years to pay off the loan, homeowners might save more money on their energy bills than the cost of their city loan payments.
And, if the property were sold, the new owner would gain the benefits of the energy projects, as well as taking over payment for them.
"What makes this really exciting is the ability to finance over a longer period of time," Mayor Bob Kiss said Thursday.
Burlington Electric announced earlier in the day that it won a $34,000 grant from the American Public Power Association for a feasibility study. The study will be subcontracted to the Vermont Energy Investment Corp.
BED spokeswoman Mary Sullivan said if analysis shows the idea is viable, BED and the city would proceed cautiously.
"We'd like to start a pilot project in a year or so," she said.
BED has set a goal of obtaining all its electricity from renewable sources by 2012. Reducing electric demand from its customers could help meet that goal. The city's efforts to reduce Burlington's carbon footprint would also benefit.
The utility's proposal is based on a new program in Berkeley, Calif. City government in September created a special, citywide tax district, the Sustainable Energy Financing District.
The district allows property owners to borrow money to install solar electric panels and to pay for the improvements over 20 years through a special tax levy on their property bills. The tax is paid only by property owners who choose to participate.
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