The CaliforniaFIRST residential property assessed clean energy (PACE) program scheduled to launch this summer will enable homeowners to choose a contractor and install a clean energy project with repayment secured through a special tax assessment repaid by the homeowner through the property tax bill.
The program, operated under the auspices of the California Statewide Communities Development Authority (CSCDA) and administered by Renewable Funding, covers solar panels and energy efficiency features and systems. Gov. Jerry Brown authorized the program to create a PACE mortgage loss reserve mechanism to address concerns raised by mortgage entities. Such entities, principally Fannie Mae and Freddie Mac, have been steadfast in their opposition to PACE programs because of default loss exposure. The loss reserve program will refund mortgage holders from losses associated with a PACE lien on the property.
‘PACE enables homeowners to buy solar panels, install low-flow toilets and make other smart investments that save energy and water without breaking the bank,’ says Brown, in a statement. ‘As California confronts a severe drought and a rapidly changing climate, this program gives homeowners another opportunity to do their part.’
According to CaliforniaFIRST, numerous studies – including the Johnson Controls annual Energy Efficiency Indicator – and market analyses in recent years have pointed to the lack of attractive financing options as one of the key barriers that prevent owners from making deep energy efficiency upgrades on their buildings.Â