Government Catch-22 Clouds Consumer Adoption of Solar Panels

As the federal government pushes to make solar energy costs competitive with coal, local governments are undercutting the effort by imposing high fees and red tape on business and consumers.

"Consider thousands of local processes, fees and timelines," says Rob Cahill, manager of business development for solar financier SunRun, pointing out that installing solar panels is still treated by city authorities like a complex home renovation. "It's not surprising that a significant amount of (solar's cost) is embedded in a local regulatory morass," he says.

Cahill in a report explained that local government fees and processing can add an average of $2,516 to a residential roof top solar installation - about 33 percent of what the homeowner would spend on solar panels.

SOURCE: by Trevor Curwin, CNBC