July 2, 2021

The PACE Program And Solar Financing

Solar Financing

When it comes to paying for a new solar panel system, there are only two options: pay for it with cash or finance it. Most homeowners choose to finance this cost with a special solar loan. However, there is one other option that may be available in your area. It’s called the Property Assessed Clean Energy (PACE) program. So, which is better? Let’s take a look.

What Is PACE And How Does It Work?

PACE is a special program that allows homeowners and commercial property owners to make energy efficient improvements to their homes or businesses by providing funding in a unique way. According to the U.S. Department of Energy, “PACE programs allow a property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment. The unique characteristic of PACE assessments is that the assessment is attached to the property rather than an individual.” Solar panel systems are one of many qualifying energy efficiency improvements that can be financed by a PACE program.

In essence, PACE is a lien on the property that you pay off over time as an addition to your property taxes. The amount you can receive to make improvements is directly tied to the value of your property and your mortgage lender must approve the conditions of a PACE program before you can receive funding. The amount you receive may or may not cover the cost of a new solar panel system. In addition, the PACE assessment is tied to the home or business, so if it is sold, the balance must be paid, or the new owner must agree to assume the PACE payments until it is paid in full.

For many property owners, PACE is too restrictive and therefore, not an attractive option to pay for a solar panel system. In addition, the idea of having a lien against your property is not appealing to most folks, especially if they aren’t planning to stay in the same location for an extended period of time.

PACE programs are not available in most states. In fact, PACE programs are only available in Missouri, California, and Florida. Moreover, PACE programs must be approved and administered by city or county governments, which means even in the states where PACE programs operate, they may not be available in your area. Of the three states where PACE is available, Shine Solar serves only Missouri. If you live in Missouri and want to find out more about PACE, you can do so by visiting the Missouri Department of Natural Resources’ webpage on this subject.

The Benefits Of Traditional Financing

Most homeowners and businesses choose to take out a traditional solar loan to finance a new system. This avoids many of the pitfalls of a PACE program and covers the entire cost of the system. Payments are also lower and the terms more flexible. As with any loan, interest rates are contingent on your credit score and payments are made monthly. Best of all, with a traditional solar loan, you can take advantage of Shine’s zero down, zero interest and zero payments for 12 months financing option, which in addition to the 26% federal tax credit for solar panel systems, will save you even more money.

To learn more about how you can take advantage of a traditional solar loan with Shine, take a look at the following video that explains how it works then call us at 844-807-4463 and we will arrange a time to work with you.

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Nick Gorden

Nick Gorden is the Co-founder and CEO of Shine Solar. Nick’s energy, enthusiasm, and leadership is contagious and has contributed to attracting a talented and successful executive team. His time is focused on strategic growth, maintaining profitability and creating the optimal customer experience. Nick has started, managed and sold companies within the communications, mortgage lending, insurance and real estate industries resulting in tens of millions of dollars of market value to investors.

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