The Property Assessed Clean Energy (PACE) program is a revolutionary financing model that allows property owners to finance solar electric and solar hot water systems through a voluntary assessment on their property tax bill. The PACE program began in Berkley, and then spread to Sonoma and Palm desert.
The largest hurdle for property owners to overcome is the upfront cost of installing a solar electric or solar hot water system. The PACE program eliminates this obstacle, as well as alleviating concerns that the Return on Investment of the solar energy system will not be realized before a future sale of the property. Since the financing results in an assessment on the property tax bill, whomever purchases the property in the future will automatically take over the payments for the systems.
San Diego is currently developing two PACE programs that are set to launch this summer of 2010.
News & Video
The PACE program was discussed at length at the San Diego City Council meeting on May 4th, 2010.
View the full video of the meeting. (PACE discussion begins at 58 minutes)
FAQs about PACE Financing
How does the PACE financing program work?
Is the PACE Program available for all neighborhoods and cities in San Diego?
Which measures can be financed?
How much can I borrow?
Will I be required to do energy efficiency to qualify for the PACE program?
How does the PACE financing program work?
- Property owner installs renewable energy/energy efficiency/water efficiency measure
- Municipality finances up to 100% of capital costs
- Municipality places a lien on the property
- Property owner pays back financed amount on their property tax bill –up to 20 year term
Is the PACE Program available for all neighborhoods and cities in San Diego?
There will be a PACE Program for the city of San Diego which is available to property owners within city boundaries, as well as a PACE program for cities within the County of San Diego which have opted to participate.
As of March 12, 2010, the CaliforniaFIRST Program will include the following cities in San Diego County:
- Carlsbad
- Chula Vista
- Coronado
- Encinitas
- Escondido
- Imperial Beach
- La Mesa
- Lemon Grove
- Oceanside
- Poway
- Santee
- Solana Beach
Which measures can be financed?
Energy Efficiency Retrofits
- Solar Thermal
- Insulation
- Heating and Cooling Systems
- Hot Water Heater/Tankless
- Windows
- Pool Pumps
Renewable Energy Fixtures
- Solar PV
- Wind
- Fuel Cell
Water Efficiency Fixtures (SD Only)
- Drought Tolerant Plants
- Reclaimed Water Systems
- Water Efficient Irrigation
City of San Diego
- Loans from $5,000-$50,000
- Must have good property tax payment history
CaliforniaFIRST (San Diego County)
- Loans from $5,000-$75,000
- Must have 20% equity
Will I be required to do energy efficiency to qualify for the PACE program?
PACE programs will likely have an energy efficiency requirement that properties must meet prior to being eligible for financing of renewable energy measures.
If you have a question about the PACE Financing Program that has not been answered here, please contact us and we will find the answer for you.
Adroit Solar will aid you in the process of applying for the PACE financing program, and create an optimal plan for the installation of a complete solar energy system for your home or business.