Residential PACE allows property owners to finance the installation of energy and water improvements on homes or businesses through the issuance of a municipal bond and pay the amount back as a line item on their property tax bill. Renewable Funding LLC, the administrator for the CaliforniaFIRST program, has secured a $300 million credit facility to fund residential PACE programs across the state.
‘There are several financing choices for solar, all of which have FICO-based credit hurdles for the residential consumer that limit adoption and slow sales,’ says Deep Chakraborty, CEO of enACT Systems. ‘PACE revolutionizes solar financing where lofty credit scores are not required. Contractors and homeowners can get financing approval for solar leveraging their property value, not their credit rating, and PACE also finances home upgrades beyond just solar.’
Because PACE is only applicable for select customers, enACT's software enables contractors to screen eligible properties. The tool also allows contractors to develop solar rooftop layouts, choose their solar hardware products, compare utility savings options based on design, manage operating costs and compare multiple financing options.
‘All proposal and deal documents for underwriting and installation are now on one system, making it easy for contractor sales teams to scale their offering,’ says Scott Strait, chief information officer at Renewable Funding.
Operating under the auspices of the California Statewide Communities Development Authority, the CaliforniaFIRST residential PACE program launched this summer in 17 California counties and 167 cities.