Does Your Home or Business Qualify for the PACE Program?

 

PACE – Property Assessed Clean Energy – is an amazing program that provides new funding for solar energy installations (in many participating states) and energy conservation and other conservation programs for existing homes and businesses.

 

 

Since PACE was adopted in 2009, at least 16 states have adopted legislation allowing local governments (cities or counties) to implement PACE programs. The states are California, Colorado, Illinois, Louisiana, Maryland, Nevada, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia, and Wisconsin. Among the cities and counties that have implemented PACE programs are the city of Berkeley, the town of Babylon, New York and others – the list keeps growing. Counties include Sonoma County in California, Boulder County, Colorado, and others.

 

 

In most cases, PACE allows the local government to establish a special taxing district to finance energy efficiency and renewable energy projects for homes and businesses. In New Mexico and Ohio, the legislation does not cover energy efficiency improvements. California also has a provision that allows districts to finance water conservation projects.

 

The program allows property owners in the districts to borrow money to pay for energy efficiency and renewable energy improvements and is typically funded by bonds. In many cases, the amount you borrow is repaid via a special assessment on the property over a long period (generally 20 years). The assessments, interest and any penalties are considered a lien against the property until the loan is repaid. The lien continues if you sell the property until it is paid off. With the exception of Oregon, the loan repayment has the same priority as property tax payments. Of course, energy efficiency improvements you add to your home or business, such as solar panels and energy conservation measures can actually lift the value of your property and is often deemed very desirable by property buyers.

 

 

Every state participating in the PACE program has different ways you can use these funds for existing homes and businesses. As noted above, the state of California also has water conservation programs related to PACE.

 

How can you benefit from the PACE legislation in your state, city or county? You’ll need the local information about the program. A Google or Bing search of PACE – with the name of your state, city or county should bring up what you need to know to participate in the PACE program.