Property Assessed Clean Energy (PACE) helps business owners finance projects that improve energy efficiency through renewable energy improvements on their property. PACE financing is bundled under a property’s assessment and is paid on the property’s tax bill. This allows for zero dollars upfront for a solar installation and allows for the cost of the installation to be spread across up to 20 years, or the life of the solar installation. If a building is sold, the continued payment of the solar installation falls to the new owners.
Positive Attributes of PACE:
- PACE offers an attractive financing option to businesses with less than perfect credit who might not qualify for other loan sources for solar installations. PACE financing is kept off the books so you can use it even if you are credited to the hilt.
- PACE can be a helpful solution in tricky tenant and landlord situations. The landlord receives the ITC tax credit and pays for the system through their property tax. The tenant receives a source of renewable energy and will pay for use.
Potential Downsides of PACE:
- Administrative fees can be high in some instances.
- Some banks may take issue with PACE financing because, in instances of foreclosure, the PACE installation would get paid prior to outstanding mortgage fees.
- PACE has limited availability in only 28 states. You, or REC Solar, will have to research if PACE is available in your area.
For more detailed information on PACE and to see if you are in one of the 28 states offering the program, visit Property-Assess Clean Energy (PACE) Programs, US Department of Energy (DOE). For third party, independent research and information on PACE, visit PACENOW Coalition. REC Solar is happy to walk you through PACE to determine if it is the right financing option for you. You can call our Energy Consultants at 844-732-7652.