The Austin City Council unanimously passed a resolution Thursday afternoon that will allow Austin’s city manager to look into providing low-interest loans for homeowners to invest in energy efficient upgrades such as solar panels.
The resolution directs the city manager to investigate the possibility of implementing the energy program and to present the logistics of the program to the Council at the beginning of next year. The plan, called Project Energize, would likely replace the city’s current solar rebate program.
The resolution was sponsored by Mayor Lee Leffingwell and co-sponsored by Mayor Pro Tem Mike Martinez and Councilwoman Randi Shade.
“A successful Project Energize will make renewable energy accessible to many more local residents, help homeowners save money on their energy bills almost immediately and continue to build on Austin’s growing reputation as a national renewable energy leader,” Leffingwell said.
The vote makes Austin the first Texas city to formally act on the provisions of a new state law passed earlier this year that allows municipalities to issue tax-free, low-interest bonds to homeowners investing in energy efficiency.
The city’s proposal allows homeowners to pay off their loans directly through their property tax. Martinez said the loans allow homeowners to avoid large out-of-pocket costs, while benefiting from the energy savings immediately.
Councilwoman Sheryl Cole expressed concerns about the city’s ability to get back the money it loans out, but she ultimately supported the resolution.
Dusty Harshman, an Austin-area personal financial planner, said the program will take away the need for Austin Energy’s current solar rebate program and ultimately save the city money.
Leffingwell said the program is still far from implementation but has potential benefits for all involved.
“It doesn’t cost the city anything, it doesn’t cost the homeowner anything and it pays for itself by energy savings,” he said. “And it has the same security as your property tax bill.”
