The PACE (Property Assessed Clean Energy) program is simple: Cities borrow money using their credit and then make that money available to homeowners who, in turn, use it to install solar systems and other green technologies. The money given to homeowners is paid back by special assessments on their property taxes.
PACE 101 Video
By all accounts, the PACE program is remarkably successful: It’s been adopted by 23 states and the District of Columbia. It creates jobs, lowers utility bills for homeowners, cuts pollution and easily transfers to new homeowners when homes change hands.
But as you can read the rest of this story, the simplicity is not all its cracked up to be. Program positioning issues,i.e. in relation to finance interests and dollars, are making the program a bit more complicated to implement. Some issues may get resolved with a bit of calmness and crafting. Other issues maybe part of the larger challenges with taking on the status quo. At the very least, the confusion is getting in the way of at least fleshing out a good idea and taking a positive action toward a more sustainable future.
Considering the current state of our country’s debt obligations and fiscal management capacity, the hesitation to rush on the idea maybe warranted but not for the reasons currently being given.
Financing a new deal for renewables that makes a tectonic shift in the energy infrastructure of the country is needed, no doubt. Left to us, the overspent, over entitled American is not going to do it on their own. The government does not have the will to make it a mandate. The market cannot unify its interests and resources to make energy efficiency happen en masse. It is going to take a trifecta of public, government, private business participation. That and a bit of a calculated financing risk. Unfortunately, we are till licking our wounds on the last “creative financing” programs related to our real estate and the paper that is carried on it. This program has the potential to truly unite the interests of the P’s (people, planet, politics,profit motive) with the preservation / recovery of the E’s(energy, economy, environment.)
Our conclusion is to measure twice, but make sure you cut at least once. Let’s keep the PACE moving forward. On all fronts.
Here is a little more detail on how the program is supposed to work.
