|
New ways of Financing
The cost of installing a photovoltaic panel or ground source heat pump is significant. Recently, a new way of financing the upfront cost of purchase and installation, called property assessed clean energy (PACE) financing, is becoming available.
In many states, including California, Texas, and New York, local governments can eliminate the upfront cost of these systems by providing PACE financing supported by a local bond issuance. Unlike traditional financing, the repayment obligation is secured by the property and repaid through an increase in the annual property tax bill over relatively long periods (generally 10-20 years). PACE financing programs are generally offered by cities and counties, but in some cases can be offered at a statewide level. Depending upon a state’s legislation PACE districts can be used to finance renewable energy, energy efficiency and in some cases water conservation projects on residential, commercial and other privately owned properties.
Renewable Funding, LLC is, at present, the only firm with experience in the design, administration, and financing of PACE districts: www.renewfund.com.
At present the following cities and counties have established PACE programs and have the ability to offer this type of financing. Eligibility for financing varies from program to program.
Berkeley, California
Boulder County, Colorado
Palm Desert, California
Sonoma County, California
|
|
