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California solar energy installations are sometimes seen as a luxury that only the rich can afford. This misconception is fueled in part by the fact that, many years ago, it was indeed very expensive to have solar panels installed on your roof.

But this is no longer the case. The solar industry has been advocating and raising awareness about the sustainability and affordability of the technology for all families, not just those who are wealthy. In fact, for many low-income Californians, solar could be a useful tool for saving money and increasing disposable income.

Solar Energy for Multi-Family Housing Complexes

Solar power has already been integrated into many affordable housing complexes, including Tassafaronga Village in Oakland, California, originally built in 1964. Tassafaronga has been completely rehabilitated with sustainable building techniques and energy-efficient apartments.

The most notable improvement is the solar panel array that covers the rooftops of the apartment buildings. In addition, there are pylons scattered throughout the complex with photovoltaic modules on top to collect extra energy. The solar panels are already paying dividends for residents of Tassafaronga, whose energy bills range from $10 to 15 a month, according to news publication OaklandLocal.com.

How Energy Costs Affect Low-Income Residents

Prior to its rehabilitation, residents of Tassafaronga, many of whom receive assistance through Federal Section 8 subsidies, suffered from the same problem that afflicts other low-income citizens: high energy costs. In most cities, affordable housing units are in dilapidated and outdated apartment buildings are inefficient when it comes to energy consumption.

In 2013, the Rocky Mountain Institute found that energy costs in public housing were 40 percent higher than in private homes. In addition, apartments built before 1970, which comprise much of the affordable housing stock throughout the country, use 55 percent more energy than those built after 1990.

The people who end up paying the price for the inefficiencies are low-income residents, who are often in no position to afford the high costs of energy.

Solar Energy Provides a Solution

However, it’s important to note that the solar energy industry and lawmakers are making efforts to reverse this trend and make more renewable energy available to low-income families.

Two of the most notable public programs are Single Family Affordable Solar Homes (SASH) and Multi Family Affordable Solar Homes (MASH), which were passed as part of the California Solar Initiative (CSI) in 2006. These programs set aside part of the solar rebates that were made available through CSI to be used specifically for low-income housing.

Making solar power available to low-income families solves a number of problems all at once. It sharply reduces energy costs for those receiving subsidies, while also helping to move the state’s energy infrastructure in a more sustainable direction. Hopefully, Tassafaronga can serve as a model for other communities that are hoping to go green to save their residents money.

One of the most popular methods of financing a Los Angeles or Orange County solar project is a lease agreement from a third-party institution. Solar leases allow homeowners to pay for their solar panels over time while still saving money on electricity costs.

In fact,  over 75% of California’s new solar installations in 2012 were paid for with a solar lease, rather than being purchased outright with a large cash payment. Many speculate that 2013 and 2014 may show an even higher percentage of leased solar systems.

But some solar installations, particularly mid-sized projects that would be put on the rooftop of a school, church or other nonprofit institution, have trouble securing such solar leases or loans. This is mainly because banks are less likely to fund a larger project unless the borrower has both a good credit score and considerable equity — something that many organizations lack.

Mosaic: Loaning Funds for Solar Projects

Enter Mosaic, a startup based in Oakland, California, that helps institutions across the United States convert their facilities to solar. Similar to Kickstarter, Mosaic is a crowdfunding platform that aims to connect investors with solar projects.

The idea is that anyone can invest in a solar project, and once the system is completed, they receive both principal and interest repayments on the power that is produced from the solar panels. Projects typically pay about 4-7 percent annual interest.

One of the biggest strengths of the Mosaic platform is that the loaning system is flexible. Investors can decide how much they are willing to invest in each project.

How to Become a Solar Investor

Getting involved in a Mosaic solar project is fairly easy. Log on to the platform on their website and then browse through the different investment projects. Once you choose from the options (previous projects include solar panels for military housing, schools, and a local convention center), you can finance a local project in any amount from $25 up.

Since the company began soliciting money a year ago in January of 2013, they’ve raised $5.5 million for solar projects from thousands of investors. These funds have led to the completion of 27 solar projects in six different states so far.

Among the funded solar installations are a photovoltaic (PV) system with 400 solar panels at an affordable housing facility in San Bruno, California and 120 solar panels for the Asian Resource Center in Oakland, California.

Limitations of Mosaic’s Solar Investments for Other States

There are a few limitations that Mosaic will need to sort out to become more useful for organizations looking to acquire a solar electric system. Certain states have securities regulations that prevent residents from investing. However, these restrictions do not apply to Californians. Any California resident may invest in a Mosaic solar project and earn real income back on their investment

In one short year, Mosaic has already proven itself to be a revolutionary way for institutions to switch to clean, solar energy. They will be a “green” corporation to watch in the coming years.

As the year comes to a close, we’re reflecting on everything that has happened in the past twelve months. Since 1974, AMECO has been promoting solar energy as a clean, renewable source of power for our planet. These top five moments remind us why we have made solar our priority and why we dedicate ourselves to it each and every day.

Solar Moment #1: Solar Grand Prix in Long Beach

Pure joy. Those two words can explain the look on the face of every child at the  Solar Grand Prix earlier this year. As we snapped photos of the kids before the races, each team held up their car with pride. Though a few teams encountered some disappointment after the races, all of the students came away as winners who had learned something new about solar energy.

Solar Moment #2: Helping a Local Nonprofit Go Solar

AMECO was honored to be awarded the  solar project at the California Aquatics Therapy & Wellness Center in North Long Beach, just minutes from our office in Paramount, California. After installing nearly 50 solar pool panels on the roof, the organization has been heating their pool with solar energy and saving on their monthly gas bill. All the more to go to their great programs!

Solar Moment #3: 1st Solar Decathlon on the West Coast

For years we’ve wanted to attend the  Solar Decathlon, so we were pretty excited when it was announced that this year’s event would be in Irvine, California. While touring the 19 solar homes displayed, we couldn’t help but feel inspired. Not only were the university teams innovative and creative about their solar home designs and use of the technology, but they were passionate about promoting the clean, renewable energy source. Seeing their enthusiasm gave us an extra hop in our solar step that week.

Solar Moment #4: Supporting the Go Solar LA Campaign

Throughout 2013,  Environment California has been pushing the idea that Los Angeles should aim to use 20% solar power by 2020. They have rallied politicians and local community members alike to accomplish this renewable energy goal. We were happy to interview a couple of our customers for their recent report, Solar in the Spotlight: Stories of Angelenos Investing in a Clean Energy Future. Check out our customer who made the final cut on page 19.

Solar Moment #5: Our Happy Solar Customers

It may be cheesy, but there is nothing that makes us happier than our happy solar customers. Each time that someone contacts us to tell us that they happy with their solar panel installation, we’re reminded why we work so hard to provide reliable, quality solar systems. Whether someone is ecstatic about their lower electric bills, pleased that their pool was nicely heated for their weekend pool party or paying a compliment to our professional installation team, we’re overjoyed every time we receive positive feedback. You may read some of  our customer testimonials on our website or see  our interviews with customers on our blog.

During the past few years, the price per watt of solar panels has been dropping. As a result, California solar energy installations have grown exponentially, and show little sign of slowing down.

However, the actual cost of a solar panel can only go so low. It will be essential for the solar industry to whittle down soft costs in order to accomplish wider adoption of solar energy in the United States.

Soft Cost Reduction = Lower Solar Installation Prices

There are other costs that go into the final price of installing solar panels on your home or business including labor, marketing, administrative costs and permitting fees.

Commonly referred to as “soft costs”, they have remained relatively flat when compared to the drop in price of “hard costs” (i.e. solar panels and inverters).

How Soft Costs Have Made Germany a Solar Leader

Though roughly the size of New Mexico and with a population about the quarter of the United States, Germany has been the worldwide leader in solar for over a decade.

By reducing their soft costs, the Germans have lowered the price of solar installations to $2.24 per watt (compared to an average of $4.44 in the U.S., according to  GreenTech Media). This is likely a result of easier permitting processes, which allows solar contractors to spend less time on each system and avoid high fees for obtaining permits.

Will the United States Follow Suit?

Even though solar soft costs are higher in the United States, solar panel installation has become increasingly popular in our country. In fact, the solar analysts from SEIA and GTM Research predict that 2013 will be the first time in 15 years that the United States will beat out Germany in total solar capacity installed.

With the Sunshot Initiative, the U.S. Department of Energy (DOE) Solar Technologies aims to make solar energy competitive with traditional forms of electricity by 2020. They fund research projects and market studies that provide solutions for solar price reduction. In time, their efforts could reduce the soft costs enough so that the United States will be competitive with Germany when it comes to price per watt installed.

Even without such reductions, solar power in California is still an excellent way for families and businesses to save money on energy costs. Additionally, those who install a solar electric system will be able to take advantage of the 30% federal tax credit, which is set to expire about two years from now on December 31, 2016. For more information, contact AMECO today at (888) 595-9570 or email gosolar@th2.e81.myftpupload.com.