Santa Fe County could be the first county in New Mexico to create an ordinance that will help homeowners purchase solar, wind or geothermal energy systems with almost no up-front cash.

Santa Fe County staff hope to have a draft ordinance for county commissioners by July. Commissioner Kathy Holian said she plans to introduce it.

The Legislature passed two bills in the 2009 session that allow counties to voluntarily establish special renewable energy tax assessment districts. The bills were modeled on similar loan programs in Berkeley and Palm Desert, Calif.

Counties who approve the special tax districts would offer low-interest loans to property owners who want to install solar photovoltaic panels, solar water heaters, wind turbines or ground-source heat pumps. Participating in the program would be voluntary for homeowners.

The renewable energy loan payments would be paid back through property taxes.

Coupled with existing state and federal tax credits, the loans would allow a homeowner to more easily cover the price of a renewable energy system that can cost thousands of dollars. In addition, Public Service Company of New Mexico pays customers for each kilowatt hour of electricity produced by a solar photovoltaic system.

The New Mexico Association of Counties, state agencies and the New Mexico Renewable Energy Industries are working with Santa Fe County to create a model renewable energy loan ordinance that other counties can use.

The bills were sponsored by Santa Fe legislators Rep. Brian Egolf and Sen. Peter Wirth. Cities from Los Alamos to Las Cruces are calling to find out more about the renewable energy loans, Wirth said.

Creating the ordinance, though, is no easy task. "We're knee-deep in the process of getting an ordinance put together," said Rep. Brian Egolf, D-Santa Fe.

The ordinance crafters have to first figure out the funding sources for the renewable energy loans.

Wirth's bill authorizes counties to sell bonds, with the revenue paying for the loans and administrative costs.

Egolf's bill focuses on solar energy loans and would allow homeowners to obtain the loans from any qualified bank, credit union or other lender. Egolf said the state Regulation and Licensing Department will determine which entities can make the loans available.

"It would be outstanding if this program could be up and running in August," Egolf said. He's worried a long delay will actually hurt solar installers, whose customers may wait to order systems until the loans are available.

Egolf and Duncan Sil, Santa Fe County's economic development director, said the renewable energy ordinance must be flexible, allowing loans from both private and public funds. "We have to look at all the options available that would make renewable energy (systems) more accessible and more affordable," Sil said.

Sil said the federal government is making available a new tax-credit bond through the economic stimulus package, which could be used for the renewable energy loans. Instead of investors earning a guaranteed interest like on typical bonds, the tax-credit bonds would provide investors with a federal tax credit.

Randy Sadewic of the Santa Fe-based solar company Positive Energy, said his worst fear is "that this is a great program and there's a stampede and there's not enough (loan) money. This has happened before."

Holian said she's excited about the renewable energy loans. "When we actually implement this we'll hold town halls to really explain this to people."

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