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Excessive Permit Fees Hinder Renewable Energy Development

Mike Morton
March 03, 2008  |  11 Comments

Most cities in the Rocky Mountain front range surrounding Denver are not doing much to stimulate Governor Ritter's, "New Energy Economy." Homeowners in the city of Lakewood, Colorado are charged $761 in permit related fees when investing in a 3 kilowatt (kW) PV system for their home. In Aurora, Colorado permit related fees are $1,350 for a 3.2 kW system. Those costs are equal to several years of those investor's energy savings. In contrast, Denver residents, installing the same size systems, pay a total of about $100, less than 3 months worth of energy savings.

Permit-related fees include zoning and plan reviews, building department fees and use taxes. City department staffs are highly qualified and provide valuable services for which they must be paid. Use taxes are equally important in that those taxes are used to pay municipality infrastructure expenses. Indeed, if a proposed project will increase the demand on a city's infrastructure, use taxes should apply.

The infrastructure expenses of city, state and federal governments, again, paid for by taxes, include the mitigation of community environmental and health-related issues. According to several reports, most notably the 2007 report by the Intergovernmental Panel on Climate Change, (IPCC), co-winners of the Nobel peace prize with Al Gore, those governments will face a myriad of financial and logistical challenges as a result of impending climate change that is, according to thousands of scientists, predominantly being caused by the use of fossil fuels.

The IPCC report says that here in the west we are very likely to experience water shortages due to extended drought conditions and less snow pack in the mountains. Colorado's front range cities are already extremely competitive in their bid to capture precious water resources for their growing cities before it can flow downstream to other mega cities like Los Angeles. Water shortages will force local, state and federal government agencies to invest heavily in water storage and conservation practices as well as in the development of water reclamation and irrigation efficiency programs and rain water harvesting.

IPCC claims that the elderly, the very young and the poor, those most in need of city and other governmental assistance, will be the ones who are most affected by increased temperatures. Declining air quality resulting from increased ground level ozone created in heat waves and particulate pollution from longer and more intense fire seasons will cause more cardio and respiratory illnesses resulting in the need for increased emergency contingency plans, again, governmental infrastructure expenses that must be paid for with taxes.

Solar energy investments, reducing the use of fossil fuels, will reduce those infrastructure demands, thereby lowering governmental operating expenses. Additionally, solar investments will lessen the need for cities and utilities to build expensive, tax payer-subsidized fossil fuel and nuclear power plants, reducing the security related expenses of protecting those centralized power sources. Once again, governmental operating expenses and subsidies are paid for by tax payer dollars and therefore, by lowering government operating expenses and reducing the need to build more power plants, solar investments will lead to less taxes that need to be collected. This should be a non-partisan issue. Everyone wants lower taxes.

Thousands of Coloradoans and perhaps millions of Americans are willing to take responsibility for providing their children and future generations with a cleaner, safer, more sustainable energy future by investing in solar. Since those investments have positive effects on the environment and our community by reducing pollution, greenhouse gases and taxes, the investors should not be penalized. Indeed, existing, tax-paid subsidies that are currently being given to fossil fuel companies with $8-10 billion quarterly profits should be used to subsidize building permit fees for such projects and investments. Clean, renewable energy is the path away from our "addiction to oil" and other non-renewable energy resources. Apparently, they get that in Denver. My hope is that, if enough people will point these issues out to their elected city officials, they'll get it in the suburbs of Denver and beyond.

Mike Morton began installing solar in the late 70's and is now a sales and design consultant with Real Goods Solar in Colorado.

11 Comments

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Phil Manke
Phil Manke
March 8, 2008
Mike may make several erroneous assumptions. One; Everyone wants lower taxes.-The people who control governmental agencies do not want lower taxes. Two; permit fees are necessary to support infrastructure. -They are actually often brought about by complaining vested interested parties seeking to maintain status quo. Unions and trade groups among others. As renewable energy moves into a very profitable level, the corruption that is attendant will certainly follow. And, it is already happening on many levels. The new ideas that may indeed save much conflict and destruction seems to foster other areas where new conflicts emerge. Those who believe conflict is their lot will attend. It remains vital to retain a perspective of cause and effect in all things. Most of them are illusions.
Chuck Forbes
Chuck Forbes
March 7, 2008
As an installer of PV systems in NJ, I have found that the permit fee can be based upon the value of the mounting apparatus and the electrical work including the inverter if you attest to that value when filing for the permit.  The solar panels are plug-ins that can be removed just as a lamp or a refrigerator can be, so the municipality has no right to base a fee on that part of the project. Usually the solar panels are more than 60 percent of the cost.  A substantial reduction in fees is warranted.
Mike Morton@Real Goods Solar
Mike Morton@Real Goods Solar
March 6, 2008
The good news is that I first had this article published in the Rocky Mountain News and it was read by a Colorado state Senator. He then introduced a bill that has now passed the Senate and has made it through the House's committee. It looks like we will be getting $300 maximum, "permit fees in aggregate" here in CO soon. This was great government in action. A letter gets published in the local paper, a senator reads it and a law is born. Proving that this is a non partisan issue that senater is a Republican.
Andrew Phelps
Andrew Phelps
March 5, 2008

As a mechanical design consultant, I can definately sympathize with the city development fees assoicated with these types of projects.  There are reasons for these fees, and for the most part (with exceptions) the cities provide constructive criticism on design reviews and protect the public against an inappropriate design. 

What I do feel should happen is that national and state governments should provide assistance to local authorities, both to cover costs for review and also for training of officials involved in the review process.  It would also be nice to have local utilities also chip in here - since we are reducing their peak demand.

 


Mary Saunders
Mary Saunders
March 5, 2008

DIY sites are recommending not connecting to the grid so that parts of home-energy needs can be met with closed systems at reasonable cost.     Property taxes are confiscatory in some jurisdictions.  With recession, things get wildcatted. 

With credits, governments could better know where things are.  Fees drive things underground. 

The dollar is now tied to a barrel of oil.  Connecting it to solar cells makes more sense.  If solar cells were to function like currency, people, including governments, would keep them in the light.  Maybe the power generated could someday give us a source of return, as Alaskans have had from oil.     

  

 


william hughes
william hughes
March 5, 2008
Backward, primitive local bodies like these are comitting their communities to brown outs and black outs when energy levels become hard to maintain.  Electric companys shed load in blocks to keep the rest working and hopefully these backward communities will be the first to be shed.  The community has nothing to complain about, though, if its members are not writing letters to their reps and voting them out at the next election.  All the power is in the hands of the people although it takes time and unity of purpose.
william hughes
william hughes
March 5, 2008
ps.  Look at what Berkley California does to encourage renewables. (previous article at this site)
Kurt Newick
Kurt Newick
March 5, 2008

In the San Francisco Bay area we (I lead an effort of Sierra Club volunteers) did a solar permit fee study and campaign and got 70 jurisdictions to lower solar electric permit fees, see: http://lomaprieta.sierraclub.org/global_warming/fee_study.htm

Recently SolarTech (a regional group of solar advocates in the San Jose, California) has created a standard solar permit technical standard submittal recommendation. We are working with the local building officlals to get this adopted as a standard in solar permit submittals.  See:  http://www.solartech.org/

Look for standard permit form with instructions under Permitting Information at the above web site (lower left corner).  For more info on solar permit standards contact Kurt Newick at KurtNewick@yahoo.com or 408-370-9636.


Jonathan Cole
Jonathan Cole
March 4, 2008

This is why we need to build modularized, integrated (PV, batteries, charge controller, inverter, backup battery charger and smart wireless instrumentation) PV energy appliances. These can be UL approved and will not require a permit because they are approved plug-in appliances. The reason that permitting is an issue is that all the systems are custom installations. We need standardized energy appliances that can be UL approved and plugged in just like a refrigerator or washing machine. This is an engineering job not an R&D job. All aspects of this approach have already been demonstrated. But no one is putting it all together.

http://lightontheearth.blogspot.com/ 

 


JJ Cinecoe
JJ Cinecoe
March 3, 2008
This is a great example of not having a national standard for all aspects of RE endeavors. This is confusing the market and hindering progress.  Be it tax incentive & credits, rebates, building permits, license fees & cost, or net metering. We need to get the message out that standardization is the key to uniform and equitable benefits for all forms of green and renewable energy.
JJ Cinecoe
JJ Cinecoe
March 3, 2008
Permitting is really difficult when knowledge of RE technology is lacking in the administrative and regulatory bodies for a permitting project. City, Counties and Localities need basic info on Solar & Wind installations for their communities. But most importantly if each state had a handbook or manual for permitting with guidance on technical safety issues such as NEC code and related LEED building everyone would be better off. Wish you the best outcome Jon@ezrenewables.net

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