City Solar Permit Fees Too High, Sierra Club Survey Says

A recent Sierra Club survey found city fees for residential solar panels to be above the Los Angeles County average and twice the level suggested to recover permitting costs.

The study found that the average fee for a residential photovoltaic (PV) solar rooftop system in Los Angles County is $544, while Diamond Bar charges $747, which is up over $40 since 2009. 

City officials, however, say the permits are priced the same as any other project.

“We calculate it the same way typical projects are: based on the valuation of the project,” Community Development Director Greg Gubman said.

The Sierra Club recommends that permit fees be based on specific review times and billable hourly rates rather than the valuation of a PV system, which the group said may often generate higher fees than necessary to cover the cost incurred in servicing permits.

The study suggests a fee of $305 to recover the costs of a residential solar panel project.

Michael White, a resident who previously considered solar panels, said the permit costs could be a deal-breaker.

“I was considering solar panels to save on electric bills, but $700 is a lot of money,” White said.

Gubman added that the increase in Diamond Bar’s fees since 2009 reflects fluctuations in Diamond Bar property values and apply equally to all city fees, not just solar panels.

“All of the building permit fees go up a percentage to correspond to consumer price index," he said. "No specific permit went up more than any other.”

The city's permitting fees for commercial rooftop solar systems came in below the county average of $12,056. The fee for commercial systems in Diamond Bar is $10,995.

Laws governing PV solar permits and fees require that local agencies have “intent to encourage the installation of solar energy systems by removing obstacles to, and minimizing costs of, permitting for such systems.”

Gubman said that other government agencies offer numerous other incentives that still make solar panels affordable and attractive for Diamond Bar citizens.

“There are incentives from Edison or from the state and federal government —rebates and tax credits," Gubman said. "That drives the demand for the solar panel installation."

The city has shown interest in solar systems and recently approved a $260,500 project to install solar panels atop a building that the city will move in to by January 2012.

Additional documents from the study:

• Residential solar permit fees for cities in Los Angeles County.
• Commercial solar permit fees for cities in Los Angeles County.
• Executive summary of the Sierra Club solar panel fee survey.
• Recommendations for residential and commercial solar permitting fees.