As the video below points out the solar movement is for everyone and the President and White House are working hard on making PACE Financing the vehicle to carry many more Americans to green energy. Ida went solar and there are a number of finance options that can help you go solar too!
PACE Financing is opening the door for more middle and low-income homeowners to not only go solar but to take advantage of financing that will cover all sorts of clean, energy-efficient home upgrades.
PACE stands for Property Assessed Clean Energy and is a state or city backed program for the financing of energy-efficient and renewable energy installations for both residential and commercial properties. Unlike most solar financing in the marketplace today, PACE financing maintains a senior lien position on the property, but is readily transferable to new owners. Since PACE Financing is State and City based, it is not available everywhere in the United States but over the last few years it has been picking up speed. Financing with PACE is enabled in about 31 states but only functioning in about 13. It is available in a lot of California now and is gaining speed in states like Florida, New York, Ohio, Texas etc
There are 3 Advantages That Come with PACE Financing
- What makes PACE financing such a great option is that it is not credit based. Yes there are some rules and regulations but the financing is not FICO-based. Your FICO score plays no part in the approval decision. As long as you are current on your mortgage (No more than 1 late in 12 months), current on your Property Taxes and have at least 10% equity on your property you stand a very good chance of qualifying.
- Depending on the time of year you get your equipment (let’s say your home solar system) installed you could have up to 18 months with no payment. Imagine the savings you could accumulate during that time. Since PACE Financing is charged to the customer in the form of a tax assessment, you get billed only once a year (in November) just like your property tax and can pay it in 2 payments (1/2 in Dec and 1/2 in April). If you install your system in August 2016 the tax roll has already been submitted and it will not appear on your tax bill until November 2017. You first solar payment would be in December 2017.
- Because PACE Financing is tied to the property you can deduct the interest on the loan on your income taxes. Since most solar financing are unsecured loans the interest is not deductible. PACE financing is also considered a Mello-Roos assessment and depending on your CPA the entire amount of the loan, principal and interest, may be considered tax deductible. If that is the case PACE financing is a fantastic option. Mello-Roos treatment is controversial and should be discussed with your CPA.
PACE Financing as well as other Clean Energy initiatives that strengthen and expand PACE Financing are strongly supported by the White House, the Department of Energy (DOE), the Department of Housing and Urban Development (HUD), the US Department of Agriculture (USDA), Health and Human Services (HHS), Veteran’s Affairs (VA) and the Environmental Protection Agency (EPA).
Modern Utility Services is proud to offer PACE Financing in selected States.