By Margot Roosevelt

"California on Monday enacted a law that allows cities and counties to make low-interest loans to homeowners and businesses to install solar panels, high-efficiency air conditioners and other energy-saving improvements.

"Participants can pay back the loans over decades through property taxes. And if a property owner sells his home or business, the loan balance is transferred to the next owner, along with the improvements.

"The innovative financing scheme, if widely adopted by local governments, could give a hefty jolt to the installation of solar panels to generate electricity. Solar systems can cost $15,000 to $30,000 -- more than many homeowners can afford to pay upfront, although state rebates cover part of the cost.

"The financing strategy was originally hatched in the office of Berkeley Mayor Tom Bates as part of the city's plan to reduce its carbon footprint. It attracted inquiries from across the country after it was described at a national global warming summit for mayors in Seattle last year."

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