PACE Bonds Set the Pace for Home Energy Financing
While much ink has been given to the benefits of solar energy and home solar installations, only a tiny percentage of the population has conducted a home energy retrofit, due to the high cost.
A groundbreaking idea — Property Assessed Clean Energy (PACE) bonds — is changing all that by alleviating some of the upfront funding issues, says Josh Becker, Democratic candidate for State Assembly (21st District).
In a PACE bond, the proceeds are lent to commercial and residential property owners to finance renewable energy improvements like solar panels and energy efficiency. The property owners then repay their loans over 20 years through an annual assessment on their property tax bill. The tax obligation stays with the property tax bill, even if the house is sold.
“People are realizing that this is one of those ideas that is making a difference in the global economy,” Becker says. “People are realizing that PACE is really important. If you can put the financing on the property tax bill it has a ton of advantages.”
In fact, Scientific American recently named PACE as one of the top 20 ideas that can change the world. And the White House announced that PACE bonds would be a major component of President Obama’s national “Recovery Through Retrofit” plan to create jobs and reduce energy costs for families.
The first PACE program was implemented in Berkeley by Cisco DeVries, a leader in the field. Becker quickly realized PACE’s potential to increase energy efficiency and create green jobs and helped DeVries expand his idea.
Through New Cycle Capital, for which Becker is general partner and co-founder, Becker funded DeVries’ company, Renewable Funding, to help cities develop PACE programs.
“I’ve become a major backer and a local and national advocate for PACE,” Becker says. “In Washington, I’ve fought for legislation to make PACE programs easier for cities to enact, and I’ve pushed for it on a local level and state level.”
Home energy retrofits can reduce energy use, lower greenhouse gas emissions, cut home energy bills, and give people a higher quality of life, Becker says. “PACE can massively fund solar energy efficiency. It’s a game changer for the global economy."
