PD Editorial: Green loans

Plenty of people are eager to install solar panels, energy-efficient appliances and water conservation systems.

Of course, coming up with the money for costly upgrades is more problematic, especially in the present economy.

However, some help may be on the way.

Sonoma County is considering a loan program that would help people pay for tankless water heaters, low-energy air conditioners and other energy- and water-saving systems while providing some much-needed business for local contractors.

The business community already is tuned in to the opportunities, as demonstrated at the Business Environmental Alliance breakfast in Rohnert Park last week where entrepreneurs showed off the latest in green technology.

“We know that green is gold,” said Carl Guardino, the Silicon Valley Leadership Group chief, who spoke at the breakfast.

Sonoma County is looking to offer plenty of gold — up to $100 million altogether — in loans for people who want to be green.

The loans would be repaid as part of property tax payments over 10 to 20 years with interest rates of around 7 percent. Because the loan would be attached to the property, the obligation could be passed on when a home or business is sold.

The obvious incentive for property owners is saving money on the fast rising cost of water and power. In addition to the loan program, there are state and federal tax breaks that could cut the cost of installing a household solar energy system by about 40 percent.

For Sonoma County supervisors, the loan program is a down payment on their goal of reducing greenhouse gas emissions in the county to 25 percent below 1990 levels by 2015.

The program would be established under the auspices of AB 811, legislation adopted last year allowing cities and counties to help finance energy-efficiency programs. If it’s approved by the Board of Supervisors, Sonoma would be the first county in the state to establish a green-energy loan program. The county is working with all nine local cities to make loans available to city residents, too.

The board is expected to act today to set a March 24 hearing on the loan program. We think the program could bring major benefits to Sonoma County property owners and is worthy of consideration.