Property Assessed Clean Energy (PACE)
PACE is a special tax assessment to help finance solar or other clean energy improvements at homes. Rather than require the homeowners to finance the project upfront, municipalities will fund the projects through bonds created. The loans are then paid back in the form of an additional property tax assessment. PACE financing programs require the cooperation of local governments that assess property taxes.
Solar customers may have the option to finance their solar systems through their local governments. Local governments can create property tax finance districts to issue loans for energy efficiency and renewable energy such as solar PV systems. PACE allows local governments to provide low-cost, 5 to 20 year loans to eligible property owners seeking to install these technologies. The solar customer then pays more on the annual property tax bill to repay the loan. The loans are permanently fixed to real property so that residents need not worry about their system’s break-even point and can pass the loan payments on to subsequent buyers of the property.