If you are not aware of Property Assessed Clean Energy (PACE) loans, you are not alone. The program was established three years ago to allow financing of energy efficiency and renewable energy programs via long-term property tax assessments.
With no money down, property owners can install solar panels, wind energy and more, paying off their investments over a 20-year period. If they sell the home before the loan is paid off, it is transferred to the new homeowner.
Unlike a solar lease, property owners do not have to purchase a PACE-financed system at the end of the program – they own it! Plus, you can enjoy an increased property value as a result.
One of the best things about PACE loans is that they encourage necessary energy investments that both save property owners money on utility bills and reduce overall carbon footprints.
Property assessed clean energy loans are not offered in every state or municipality across the U.S. The most successful programs operate in Sonoma County, California, San Francisco, Sacramento, and Miami Florida. In these regions, financing between $50-650 million is available through public and private funding.
You read that correctly – private funding! PACE programs have been considered as publicly financed through municipal bonds and the like.
Property assessed clean energy loans make sense on a number of levels. The amount of energy used by buildings in the U.S. could be cut by 15-20% with energy efficiency improvements. With energy use in buildings accounting for 40% of overall energy use, financing through PACE is a great way for us to advance toward energy independence and reduce nationwide carbon emissions.
For more information visit PACENOW.org.