PACE is Working
for Consumers

Meeting a Critical Gap in the Marketplace, An Affordable Choice for Homeowners

  • Property Assessed Clean Energy (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.
  • Participation by the property owner is 100 percent voluntary and PACE is not a government-imposed tax.
  • PACE provides homeowners 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 makes efficiency improvements more accessible, allowing homeowners to lower utility bills and reduce consumption of natural resources.
  • Energy efficiency improvements such as water heaters, insulated windows and doors, efficient roofing, or solar panels can be 100 percent financed based on the value of the home, requiring no upfront cash payment.
  • This not only allows many homeowners to access lower interest rates, but expands the number of homeowners who can consider PACE financing to make home improvements.
  • Since it was approved nearly a decade ago, the PACE industry has grown by leaps and bounds.
  • Like any growing industry, there have been speed bumps along the way. But PACE providers have embraced and support additional consumer protections for PACE.
  • In 2016, the nation’s leading PACE providers worked with the Department of Energy on Best Practice Guidelines for Residential PACE Financing Programs, which strengthened underwriting and contractor standards.
  • Looking ahead, PACE providers agree that all PACE financing systems must:
    • Offer simple but comprehensive disclosures which provide a clear, three-day right to cancel and are modeled on the federal Know-Before-You-Owe disclosure form now used for home mortgages.
    • Confirm financing terms by phone with all customers in a live, recorded call that reinforces the written disclosures;
    • Require participating contractors to be property licensed, bonded, and insured;
    • Withhold contractor payment until the homeowner approves the completed work;
    • Remove contractors that do not adhere to agreed-upon PACE standards;
    • Independently audit completed installations for compliance; and Set standards governing contractor marketing practices and workmanship issues, including adopting processes to resolve and remediate homeowner complaints – a level of consumer protection rarely available with any other form of home improvement financing.