Property-Assessed Clean Energy

DefinitionDefinition: Property-assessed clean energy (PACE) is a financing tool for property owners to fund energy or water efficiency or renewable energy installations. Structure: PACE is a secured loan that attaches to the property as a voluntary assessment on the property taxes. To be eligible for a PACE loan, the building must be located in a local jurisdiction where the City or County has passed a resolution to participate in a PACE program. PACE financing is often a public-private partnership between a private finance company and a public agency.Transfer? The loan may be transferred to the new owner upon sale of the property with the approval of the system owner. Real or Personal Property? If seller owns and not a third-party, then renewable system is typically considered real property and tax credits and maintenance requirements, etc. belong to the property owner. Terms: Loan terms can vary between 5 and 30 years. Some programs also allow PACE to finance solar leases and power purchase agreements (PPAs). Due to the complexities of PACE financing, NAR and states like California have provided statements which are worth further consideration. NAR - http://www.realtor.org/articles/administration-issues-pace-guidance; CAR - http://www.car.org/newsstand/newsreleases/2015releases/fhapacelien