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SOLAR DAILY
High Permit Fees Hinder Residential and Commercial Solar Power
by Staff Writers
Los Angeles CA (SPX) Jun 23, 2011

47% (42 of 89) cities are charging excessive fees for residential PV projects.

The Sierra Club (Los Angeles and Loma Prieta Chapters) are following up on a campaign to encourage municipalities in Los Angeles County to support the installation of residential and commercial roof-top solar power systems by lowering permit fees.

Back in June 2009, the Sierra Club, Angeles Chapter formally asked L. A. County municipalities with unreasonably high residential solar permit fees to consider lowering them to cost-recovery levels. Between 2009 and 2011, some significant changes in solar permit fees have occurred: 38 cities have lowered them (but 14 have raised fees) for residential PV systems.

During the period of the latest study, between January 2011 and June 2011, fifteen cities have significantly lowered their commercial solar permit fees while two others have raised them. (Note that "significant" is defined as fee changes greater than $100.)

In the winter of 2010/2011, Sierra Club volunteers surveyed all municipalities in Los Angeles county to determine their estimated permit fees for installing roof-mounted photovoltaic (PV) systems on residential and commercial buildings. Such structures can include homes, office buildings, stores, industrial facilities, schools, churches, government and non-profit buildings. Volunteers conducted this survey for a 131 kW commercial PV project and a 3 kW residential PV system.

A new report has been published for the Sierra Club's Commercial and Residential PV permit fee campaign for Los Angeles County. This web link has an executive summary of the report that shows fee rankings for all jurisdictions in Los Angeles County.

The Sierra Club's solar permit fee campaign in Southern California began in 2009 for residential PV systems. Now this is being updated to include both residential and commercial rooftop solar projects in Southern California.

The survey report shows that for commercial PV projects 131 kW in size, 62% (55 out of 89) L. A. County jurisdictions are over-charging fees, exceeding maximum cost recovery threshold levels as determined by a basic PV permit fee calculator highlighted in this new report.

In addition, 47% (42 of 89) cities are charging excessive fees for residential PV projects. Kurt Newick, leader of the study states, "This survey reveals many municipalities are incentivizing solar power by lowering solar permit fees to reasonable levels, while other cities are doing just the opposite, charging many times more than what is needed to recover city permitting costs for inspections and plan reviews."

On May 30, 2011, the survey team contacted 44 municipalities with fees exceeding $10,000 for a 131 kW commercial PV project. These Sierra Club volunteers also contacted 27 cities in LA County that have fees exceeding $700 for a 3 kW residential PV system.

The team notified these cities that their solar permit fees were unreasonably high and requested that they review their solar permit fee calculation methods, since they are likely charging fees higher than cost-recovery levels. Several cities have responded by either lowering their solar permit fees or starting the process to review their fees.

Charging more for solar permits than the reasonable costs to administer them violates California Government Code Section 66014, which provides that fees associated with building inspections and building permits "shall not exceed the estimated reasonable cost of providing the service for which the fee is charged."

Since local sunlight and available roof space are plentiful, only the number of solar power installations limits the production potential of this abundant renewable resource. The Sierra Club acknowledges leaders of those cities that have already taken action to make solar energy more affordable for homeowners, businesses and non-profit entities, and asks others to follow their lead.




Related Links
Sierra Club PV Permit Fee Campaign
All About Solar Energy at SolarDaily.com

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