Sonoma allows private lenders to make loans for energy upgrades

The Sonoma City Council gave a thumbs-up Wednesday to partnering with private companies to offer loans to local businesses and homeowners seeking money to pay for energy- and water-saving upgrades to their properties.

Their unanimous vote follows an earlier move from Sonoma County supervisors to let for-profit companies join the marketplace, providing financing to property owners who want to install solar panels, water-efficient toilets and energy-saving appliances and repay it over time on their property tax bills. The county first launched the Sonoma County Energy Independence Program six years ago, giving residents an opportunity to borrow cash based on their properties’ assessed value and put the loans on their property tax bills. The city joined that year, allowing its residents to take advantage of those loans.

The county has loaned more than $45 million for nearly 4,000 upgrades countywide. But it only has $15 million left in the coffers.

Sonoma city officials said residents will be able to continue to make improvements to their properties and make the city greener now that two companies have signed up to provide finance - Home Energy Renovation Opportunity and CaliforniaFIRST.

“This is so vital,” Councilwoman Laurie Gallian said about the loans. “This is a relief for some people who do not have the cash or equity on their home to do it.”