New Urbanist Blacksburg
by Max Rooke & Lonnie Hamilton III
Solar Loan Program
Priority: High | Cost: High | Implementation: Moderate
Residential greenhouse gas emissions represent a third of Blacksburg’s total emissions (Blacksburg Climate Action Plan, 2016). This primarily comes from energy consumption - the energy that households use to heat their water and their homes is often derived from fossil-fuels. Additionally, many older homes are not built to modern energy efficiency standards, meaning that more potentially ‘dirty’ energy is consumed than necessary.
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One way the town could address this issue is with a solar energy loan program. Solar energy is vital because it is available consistently year-round. Even on cloudy days solar panels generate energy. They only lie dormant at night or during inclement weather, and excess power generated during the day is stored for a literal rainy day. This energy source is carbon-free and, after installation, households and building owners pay only for maintenance - no more electricity bills. Blacksburg already has a history of leading the
Photo by Lonnie Hamilton III, with imagery from Zillow
Source: Solarize Montgomery
Photo by Lonnie Hamilton III, with imagery from Zillow
way in solar adoption. Solarize Blacksburg back in 2014 was the first solar initiative in Virginia, and as of 2019 the town had 100+ solar installations on residential and commercial properties (Blacksburg Climate Action Plan, 2016). However, the town needs to take a step forward to heavily ramp up solar panel installations.
Using Green New Deal funding, the town would offer zero-interest loans for solar installations. One of the largest hurdles to people implementing solar power is the large upfront cost of the panels themselves (Blacksburg Climate Action Plan, 2016). While they more than earn their price back after only a couple of years, people are accustomed to paying for their energy costs in small increments and many are unable to front those costs at all. With Green New Deal funding, the town would be able to front the cost of solar panels and installation for qualifying homeowners and business owners. They would then pay the town back over a term as long as 20 years. With a term that long, the loan repayments could potentially cost less than an average power bill, providing ample incentive for participation in the program.
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Qualifications for the program would be that the resident and building be located in town boundaries and that applicant has a credit history that demonstrates an ability to pay the loan back. However, to ensure that the program is inclusive and widespread, the credit history requirement could be waived for households making less than half of the town’s median household income. Depending on how much Green New Deal funding is made available, the town could even consider subsidizing panels and installation for those under the median household income. Much of this is based on the successful Maui County Solar Water Heating Program. It was able to provide zero-interest loans to over 500 families (US Department of Energy), demonstrating that there is a demand for solar installation if it is made accessible.