A blog on using the power of Disruptive Business Models to build successful businesses...and other stuff. by Joe Agliozzo

Wednesday, July 23, 2008

AB 811 - New California Law Authorizes Cities to Make Low Interest Solar Loans

California has passed a new law AB 811, that authorizes cities in California to make low interest loans secured by a lien on the property. The liens transfer to any subsequent owner if the property is transferred and the property owner makes payments much as they would property tax payments.

This mechanism should allow cities to easily raise bond money to finance the programs, given that the loans are secured by liens and, like tax liens, will presumably be senior to all other liens.

The low interest and presumably easy availability of these loans should be a serious spur to PV sales. Low interest loans plus the CSI will bring many installations close to grid parity on a monthly basis.

I also think this has to be seriously troubling to PPA and lease providers.. wonder what their "spin" will be?