Momentum is Building for #PACE
OCTOBER 30, 2017
Property Assessed Clean Energy (PACE) financing continues to build momentum as one of America’s most successful energy financing programs. PACE is an effective free-market financing option embraced by many state and local governments that enables individual property owners to obtain long-term financing at competitive, fixed rates for energy and water efficiency, seismic retrofits, hurricane protection, and other property renovations and repay through a line item on their local property taxes.
As a vital option to access credit to replace failing systems and make improvements to their homes, meeting a critical gap in the consumer-financing marketplace, PACE has, created more than 30,000 local good-paying jobs and benefited more than 150,000 homeowners. Since the first PACE legislation was approved by Republican Governor Arnold Schwarzenegger nearly a decade ago, PACE enabling legislation has expanded into more than 30 states and the District of Columbia, along with hundreds of American cities and counties. Residential PACE programs currently operate at scale in three states –California, Florida, and Missouri– but other states are laying groundwork. Programs in the three states also support energy efficiency manufacturing jobs nationwide.
In October, California enacted into law two bills strengthening PACE by establishing uniform consumer protection standards for PACE providers and a regulatory framework that will benefit homeowners and consumers across the state. The legislation received strong support from legislators, local governments, clean energy advocates, a broad spectrum of business interests, and was developed working closely with consumer advocates.
Specifically, the California legislation:
- For the first time, conditions underwriting on a property owner’s verified income and ability to pay;
- Creates a licensing and regulatory framework with oversight from the state Department of Business Oversight; and
- Enhances leading consumer protections, like confirmation of terms calls with property owners and an expanded “right to cancel,” setting PACE apart from other forms of financing available to homeowners.
PACE industry leaders are already working with legislators in other states to support similar consumer protection and underwriting state laws for residential PACE.
PACE financing has expanded into dozens of new markets in 2017 in Florida, Missouri, and California, including St. Louis, MO; Hillsborough and Palm Beach counties, FL; Cupertino and Tulare County, CA, and many more. The growth of residential PACE financing shows highlights the critical role PACE financing can play to strengthen communities and give homeowners more options to improve their homes.
PACE financing has pumped more than $5 billion into local economies across the country at no cost to public budgets. At its core, PACE is fundamentally a property rights issue. PACE financing is 100% voluntary, and it enables property owners to access long-term private financing in order to make their homes and businesses more efficient and secure.
In addition, PACE offers local communities a critical tool for reducing energy use, increasing grid reliability and making the most efficient upgrades affordable. Over the lifetime of products installed, PACE is on track to reduce carbon dioxide emissions by more than 4 million tons, save more than 15 billion kilowatt hours of energy, which is the equivalent of powering more than 1.5 million homes a year, and conserve more than 10 billion gallons of water.
To learn more about PACE’s momentum and its benefits to homeowners, businesses, and our communities, visit PACEisWorking.com.