October 22, 2015 | By RGR Marketing Blog

The PACE Program, Demystified

Solar energy and other renewables are becoming quite popular, and nowhere is this truer than in California. Golden State residents have embraced renewable energy in a big way, and as a solar installer, you’re certainly aware of solar’s unstoppable momentum.

You also know that financing programs such as solar leases and power purchase agreements have made solar available and attractive to a much wider segment of the population. At one point, only the well-off could afford to install a solar system, but these days, even residents of modest means can afford to jump on the solar bandwagon.

But for those who are interested in going solar with little or no up-front cost, there’s another attractive option. It’s called PACE.

PACE stands for property assessed clean energy. It’s a financing program that allows property owners to fund their renewable energy projects via a voluntary property tax assessment that is added on to their existing property tax bills.

Are You Clients Eligible for Pace?

The PACE program is only available to property owners in locales that have instituted the program. In addition, participants are required to have a certain amount of equity in their home or business. Also, it’s important to note that those property tax or mortgage delinquencies are not permitted to apply. You may want to contact your local PACE provider for further details, so you’ll be ready to answer your clients’ questions as they arise.

PACE Advantages

The first advantage of PACE financing is obvious: it allows home and business owners to opt for clean, renewable energy with minimal out-of-pocket cost. Payments can be spread out over as many as 20 years. Interest paid on PACE loans may be tax deductible, and the loans are transferrable.

And unlike solar leases or PPAs, PACE borrowers actually own their own solar systems, so they’re able to take advantage of all applicable tax rebates and incentives.

PACE for All

Which types of solar customers can take advantage of PACE? Actually, the program is available for use on residential, commercial, and municipal properties that fit program criteria.

How Can PACE Financing Be Used?

PACE financing options vary, depending on the particulars of the local PACE program. Generally speaking, it can be applied to a wide array of permanently affixed products that reduce electric, gas, or water use, including insulation, energy-efficient HVAC replacements, water-saving plumbing fixtures, and of course, photovoltaic arrays.

Can PACE Help Your Clients?

As a solar installer, you’re always looking for ways to close more deals and spread solar far and wide, and PACE may help you do just that. PACE is one option among many, but it could be the perfect fit for some of your prospects, and that means more solar installations for you. And if your sales pipeline is lacking such prospects, then get in touch with us today. When you buy exclusive solar leads from RGR Marketing, you get hands-down, the best leads in the business.

[Photo Via: Financere]

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