In a move to accelerate local clean energy adoption, the Pasadena Municipal Services Committee is set to discuss a proposed 12-month pilot program that will waive permitting and plan review fees for residential and commercial solar photovoltaic and battery energy storage systems.
The proposal, presented by Pasadena Water and Power (PWP) General Manager David M. Reyes, will be considered at the Committee’s March 24 meeting. The initiative is designed to support grid reliability, reduce peak load demand, and align with the City’s climate and sustainability goals, specifically its Optimized Strategic Plan and Resolution No. 9977.
“Upfront costs remain a primary barrier to solar and battery adoption,” Reyes noted in his memorandum. While equipment prices have declined, soft costs such as permitting and plan review continue to represent a meaningful portion of total project expenses. PWP has already implemented some fee reductions for solar installations but is now seeking to memorialize and standardize these fees to provide immediate, visible cost savings to customers and signal strong municipal support for Council policy.
The pilot program will combine three coordinated strategies: a public outreach and marketing campaign, a targeted solar and battery rebate program combined with a low-interest loan, and the proposed fee waiver program. The fee waivers will apply to all eligible residential and commercial solar PV systems and paired or standalone battery energy storage systems within Pasadena City limits, including new installations and qualifying system expansions. Staff will also be issuing a Request for Proposals in March to identify financial institutions to partner with for a low- or no-interest loan program to benefit those who may not otherwise be able to afford solar installation. The program also supports broader environmental justice and equity objectives by pairing fee waivers with rebate programs that can be targeted to underserved communities.
Specifically, the program will waive PWP fees for solar and battery installations, PWP plan review fees, and PWP inspections associated with these systems. The Committee will also discuss the potential for similar waivers or reductions for Building and Safety fees. Fees related to structural upgrades not directly tied to solar or battery installation, non-energy-related construction, and hard costs of new meters will be excluded. To be eligible, projects must be located within Pasadena City limits, comply with all applicable building, fire, and electrical codes, and be installed by licensed contractors.
The City anticipates that waiving these fees will result in a temporary reduction in direct revenue. However, officials expect this loss to be offset by broader financial and operational benefits, including the potential deferral of capital expenditures due to reduced peak demand, increased electricity sales retention through local generation integration, and economic multiplier effects from local investment in clean energy and job creation. The program’s secondary benefits also include enhanced community resilience. Additionally, increased permitting volume may partially offset revenue losses through fees associated with non-waived components of projects. The magnitude of the revenue impact will depend on program uptake, and the City plans to provide a baseline revenue analysis four months into the program.
PWP plans to implement tracking systems to monitor program participation and outcomes, with a formal evaluation framework scheduled at the conclusion of the 12-month pilot. Key performance indicators will include the number of solar and battery storage permits issued, total installed solar and storage capacity, participation rates across customer segments, and the geographic distribution of installations. At the conclusion of the pilot, PWP will work with Planning and Community Development to memorialize any fee changes in the City’s adopted Schedule of Fees, Taxes, and Charges as part of the annual budget adoption.
The Municipal Services Committee is scheduled to meet at 4 p.m. on March 24 in the Council Chamber, Room S249 at City Hall, 100 North Garfield Avenue. For more information call (626) 744-7311 or visit https://www.cityofpasadena.
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