Santa Fe County commissioners unanimously approved the state's first renewable-energy financing district Tuesday, which will allow property owners to pay for solar, wind and geothermal energy systems through their property taxes.

The county fronts the money for property owners to buy and install such systems, explained Duncan Sill, the county's economic development director. "Repayment takes the form of a special assessment on the property owner's tax bill."

The program is voluntary. Residential and commercial property owners in the county can apply to be part of the renewable energy district. Those approved are the only ones who will be assessed a special property tax to pay back a renewable energy system loan, Sill said.

The renewable energy district will allow property owners to obtain long-term loans, up to 20 years, to buy and install solar thermal, solar photovoltaic, wind and geothermal systems at low interest rates.

The systems cost thousands of dollars, and many property owners can't raise the upfront capital or find affordable loans to pay for them, Sill said. "This will make energy improvements more accessible and affordable to the public," he said.

Property owners who install renewable energy systems can then enjoy lower electric utility bills.

The boundary of the renewable energy district is the county. Municipalities such as Santa Fe or Edgewood can opt into the district through an agreement with the county.

The County Commission will act as the district's governing board for six years, after which members can be appointed, Sill said.

Once the program is up and running, probably no earlier than December, here's how it will work:

• A residential or commercial property owner in the county can apply to be part of the district.
• County staff will make sure the application is complete, and the property owner will sign an agreement spelling out the type of renewable energy system, the cost and the repayment plan. The agreement is sent to the County Commission for approval.
• Copies of renewable energy agreements between homeowners and the county will be filed with the county assessor, treasurer and clerk.
• The property owner will work with a renewable energy installer to put in the system and start using electricity powered by wind, sun or geothermal.
• The payment due on the loan appears each year on the owner's property tax bill.
• The loan, and the renewable energy system, stays with the house or commercial building, Sill said. If the property owner sells, the buyer gets the benefits of the system and continues to pay on the loan through property taxes.

Sill said the renewable energy district also will support jobs by creating a need for more renewable energy system installers.

The renewable energy financing districts grew out of legislation sponsored by Santa Fe legislators, Rep. Brian Egolf and Sen. Peter Wirth, and approved last session.

The money to set up the legal framework for the county district comes from $100,000 in federal stimulus funds, Sill said. He said the county also will solicit bids from companies that can provide private seed money and expertise to handle initial loans for the program.

After that, the county can issue bonds to create a revolving loan fund for property owners in the renewable energy financing district.

Contact Staci Matlock at 986-3055 or smatlock@sfnewmexican.com.