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Seven Ways to Save PACE - Greentech Media

July 22, 2010

The retrofit program is under siege, but it can be saved.

PACE. It's the Susan Boyle of green tech policy initiatives.

PACE, or property assessed clean energy, emerged in 2008 in Berkeley as a way to help homeowners and businesses finance energy efficiency retrofits. Under typical PACE programs, the owner gets a loan via city or state organized bond program to make repairs and then pays it back through a supplemental assessment on property taxes.

Getting financing under a PACE program, ideally, is cheaper, quicker and easier than going to banks yourself. Additionally, owners don't have to worry about getting saddled with the full cost of the repairs if they sell: the subsequent owner continues the payments. This is especially important in commercial retrofits because owners might own the building for only a few years.

Cities reduce energy consumption, building owners improve their property, occupants and tenants enjoy a better living space, banks get to issue loans and contractors get to bid on jobs. 23 states and several cities inked programs and Joe Biden, Steve Chu and President Obama bear hugged the idea.

What could go wrong? Full Article