Whether it occurs within the context of the Stimulus package or some future legislation, one of the most effective uses of taxpayer funds could be to help local communities (or groups of communities) establish revolving loan funds to help finance renewable energy upgrades for home owners.
Based on a pilot project in Berkley California, here's how the fund might work.
A homeowner applies to the fund for a loan to finance adding a renewable energy system to his/her home.
If granted, the cost of the upgrade is paid for through the fund, with repayment tied to property taxes.
On average, in the pilot project, this loan added about $100/month to the property tax but in the first year saved between $35.00 - $50.00 per month in electricity costs, and it is estimated that in only a few years the savings will completely offset the additional property tax burden.
As the funds are repaid, they are then loaned out to additional families.
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