Chapter 1.1
Climate Change

• ALL
• Remove Code Barriers
• Create Incentives
• Fill Regulatory Gaps

Density Bonus for Installation of Solar Energy Systems

INTRODUCTION

Solar power is increasingly popular and affordable for residential use.[1] A majority of the residential installations in recent years have been on middle-class homes.[2] Providing density bonuses in exchange for installing solar energy systems encourages the growth of green energy while mitigating sprawl. Density bonuses are an “incentive-based tool that permits a developer to increase the maximum allowable development on a site in exchange for either funds or in-kind support for specified public policy goals.”[3] The most popular type of density bonus is an of-right incentive.[4] This type of incentive grants the density bonus if the developer provides a set amount of the specified public interest, such as installing solar panels.[5] Local governments can apply this type of incentive to solar power by granting density bonuses to developers if a certain portion of the new development gets its power from solar or renewable energy.[6] Local governments can create a tiered system where the more solar or renewable energy installed (measured by energy output or percentage of energy needed on-site), the higher the density bonus. These ordinances require local governments to determine the proper incentive and the corresponding property requirements. These ordinances may also require certification or review prior to receiving a certificate of occupancy.

EFFECTS

Solar energy can provide numerous benefits once installed. Such benefits include low maintenance costs and an increase in home value.[7] Solar panels can add an average of approximately 20,000 dollars to the value of a home.[8]  This increase in value benefits both the developer when they sell the house and the local government when they collect property taxes.

Density bonuses, in exchange for solar energy system installation, benefit the environment by promoting clean and renewable energy. Solar energy produces significantly less greenhouse gas emissions and harmful pollutants compared to the alternative of fossil fuels.[9] By encouraging more developments to run on solar power, local governments can reduce their overall emissions.

Finally, density bonuses can help reduce energy sprawl.  By providing the bonus for units within the development that provide clean energy, a local government can limit the need for an additional solar farm that would take over another parcel of land.[10] Moving towards green energy has directly affected thousands of square kilometers of land through energy sprawl.[11] Energy sprawl is the amount of energy that can be produced in a given amount of space.[12] Some governments have already begun to notice the problems that come from failing to mitigate energy sprawl caused by green energy and have begun to evaluate options to solve the problem.[13] Solar energy is one potential method to limit energy sprawl as panels can be placed on rooftops.[14]

EXAMPLES

McCall, ID

McCall provides density bonuses in the Planned Unit Development (PUD) chapter of their code.[15] The PUD chapter provides the City zoning flexibility outside of the standard zoning regulations.[16] McCall uses this flexibility to provide density bonuses for a number of public policy interests, primarily, renewable energy.[17] The City provides a 10% bonus to density, if 50% of the total energy needs of the development are provided by “solar, wind, geothermal, or [an] alternative renewable energy source.”[18] This of-right bonus provides early notification of the bonus and helps encourage renewable energy.

To view the provision, see McCall, ID Code of Ordinances § 3.10.024(A) (2006).

Hinesburg, VT

Hinesburg provides density bonuses in a portion of its code relating to village growth area.[19] The additional village zoning requirements can apply to each of the City’s other zoning districts including commercial, industrial, and residential districts.[20] This portion of the code provides density bonuses to developers in exchange for providing public benefits that help further the goals expressed in the town plan.[21] Notably, one of the public benefits the town provides for is renewable energy technology.[22] Developers are given the density bonus if a certain percentage of the units within the new development provide the renewable energy benefit.[23] The requirement is based on the percent of the development’s long-term energy needs that are provided by renewable energy.[24] This bonus allows the City to further encourage renewable energy, and help discourage sprawl in the process.

To view the provision, see Hinesburg, VT Code of Ordinances art. 2 § 2.9 (2018).

ADDITIONAL EXAMPLES

Gorham, ME Land Use Development Code § 1A-4 (4) (2015) (providing a maximum density bonus for residential and nonresidential uses in planned unit developments, in exchange for public amenities, including solar access and energy efficient design).

Orlando, FL Code of Ordinances § 58.1104 (2015) (providing developer bonuses for a number of public policy practices including a site design that considers energy efficiency, stormwater design, solar or other renewable energy sources).

ADDITIONAL RESOURCES

Planning for Solar Energy Briefing Papers, American Planning Association (2013), https://perma.cc/3MRV-FUDZ.

Colleen McCann Kettles, A Comprehensive Review of Solar Access Law in the United States: Suggested Standards for a Model Statute and Ordinance, Solar America Board for Codes and Standards Report (Oct. 2008), https://perma.cc/R445-NHDT.