Energizing Austin

A great idea germinated in California is now taking root in Texas, starting in Austin.

The City Council has voted to launch "Energize Austin," a new program to make solar more affordable and more available to companies and residents in the service area of Austin Energy (AE), the city-owned electric provider. Energize Austin is modeled after similar programs in Palm Desert and Berkeley, Calif.: the city government will provide low-interest loans to cover costs for installing solar arrays on owners' properties. The loan will be paid back over many years at a cost that is less than the annual electric bill savings. As a result, companies and residents will realize immediate savings because the installation costs are spread out over a long period of time. Also, the loan payments are attached to property tax bills, so the loan stays with the property should the home or business be sold -- which is only fair, since a new owner also gets the solar array and future, lower electric bills. The upshot, as Austin Mayor Lee Leffingwell noted, is that every solar array "pays for itself."

More Texas cities are expected to follow suit over the next several months. With support from Applied Materials and others, state legislation authorizing this approach to solar financing won bipartisan support in the Legislature. It was authored by Texas Reps. Mike Villareal, D-San Antonio, and Eddie Rodriguez, D-Austin, and signed by Republican Governor Rick Perry in June.