Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money, without a credit check, to pay for energy efficiency improvements. The amount borrowed is typically repaid via a special assessment on the property over a predetermined number of years. California's Assembly Bill 811 has authorized local governments to establish such programs. California counties currently offering PACE financing include: Berkeley, Palm Desert and Sonoma County. Other counties in the process of launching a PACE type program are: San Diego, Los Angeles, Riverside and Ventura.
With the enactment of AB 811 in 2008, California enabled cities and counties to offer PACE financing programs to property owners. Financing must be used for energy efficiency improvements and/or for installation of renewable energy sources. The property owner agrees to a contractual special tax assessment on his/her property tax bill. The cost of the improvements can then be spread out over the next twenty years.
Eligibility for this program requires the property owner to have a clean title. He/she must also be current on property taxes and mortgages.
Each county will have slightly different requirements but they all will authorize the property owner to contract for the improvements or purchase equipment directly. Local governments make the determination as to which energy projects are eligible for financing.
