Renewable Energy Financing District Act Becomes Law

With Governor Richardson’s signature this week on SB 647, local governments can now create Renewable Energy Financing Districts to encourage installation of residential and commercial solar, wind and geothermal energy systems. The district gives municipalities or counties who participate access to 0% interest green energy bonds available through the federal stimulus bill and allows property owners to recoup up to 40% of the cost in state and federal tax credits.

“Senate bill 647 takes maximum advantage of the renewable energy incentives in President Obama’s stimulus package and the renewable energy tax credits at the federal and state level," said Senator Peter Wirth (D-Santa Fe-25), sponsor of Senate Bill 647. It is a law which addresses climate change and makes bottom line economic sense for homeowners looking to save money on their energy bills.”

“In the long run, renewable energy improvements can pay for themselves over the 20 years with the energy savings and energy portfolio rebates that property owners installing those improvements would realize. I think it’s a real way to jump start a renewable energy industry in our State at the same time that we address environmental issues,” said Senator Wirth.

Check out this (pdf) provided by Sen. Wirth that illustrates how the provisions of this law work with other incentives to make residential solar photovoltaic panels affordable and cost effective.

Also see a recent guest blog by former Doña Ana County Commissioner Bill McCamley and Mark Westbrock, PV Systems Designer at Positive Energy, that discusses how new programs like this one make solar energy a good investment.