PACE Programs

PROPERTY ASSESSED CLEAN ENERGY (PACE) Programs Available in Emeryville

California First -  CaliforniaFIRST is an innovative partnership between the city government and a private financing company that allows you to receive upfront funding for energy efficiency, renewable energy and water efficiency improvements for your home or business -- and to repay through your property taxes over the course of up to 20 years. www.californiafirst.org or by phone : (888) 996-1745

Alliance NRG -  The AllianceNRG ProgramTM offers commercial and residential property owners across California financing for energy efficiency improvements, renewable generation projects, water conservation measures, seismic strengthening and electric vehicle charging infrastructure. www.alliancenrg.com or by phone: (855)-431-4400

PACE Funding -  PACE funding is a leading energy efficiency, water conservation and renewable energy finance company. They are an exciting technology start-up but partnered with an established financial institution with substantial experience in consumer lending. This makes them unique in PACE and provides their employees with the excitement of a start-up environment but with the stability of a solid financial institution. http://www.pacefunding.com/homeowner/

Clean Fund -  provides long-term financing for energy, water and renewable energy improvements to commercial properties. http://www.cleanfund.com/

What is property assessed clean energy financing?

Property Assessed Clean Energy, or PACE, financing allows property owners to fund energy efficiency, water efficiency and renewable energy projects with little or no up-front costs. With PACE, residential and commercial property owners living within a participating district can finance up to 100% of their project and pay it back over time as a voluntary property tax assessment through their existing property tax bill.

Why use PACE financing?

First, by offering up to 100% financing on qualifying improvements, PACE can eliminate the need to pay out of pocket for your project. Second, depending upon the type of improvements installed, repayment may be amortized for a period of up to 20 years, keeping your monthly payments low enough that your utility savings may exceed your payment, creating a net positive cash flow. Third, the interest may be tax deductible. Finally, because PACE ties the loan to the property and not an individual, the loan may transfer upon sale or refinancing of the property. In other words, you may not need to be concerned about recouping the cost of your improvements if you decide to sell the property before the loan is repaid.

What products and improvements can be financed with PACE?

Eligible products that can be financed with PACE may vary by individual PACE providers and administrators. In general, most products that can be permanently affixed to a property and reduce on-site electric, gas or water consumption will be considered eligible. Some examples include attic insulation, heating, ventilation and air conditioning replacements; solar photo-voltaic and thermal systems, and low-flow toilets. For questions regarding specific product eligibility, contact the PACE Provider that have been approved by the City of Emeryville.

What is the history of PACE in California?

In California, the first commercial and residential PACE programs were established in 2008.

The residential programs soon encountered a significant hurdle. The Federal Housing Finance Agency (FHFA) was concerned that residential PACE assessments had a lien status superior to that of existing mortgages underwritten by Fannie Mae and Freddie Mac. This meant that, in the event of a default, any outstanding PACE assessments (though not the entire amount financed) would be paid off before other liens such as first deeds of trust.

In 2010, Fannie Mae and Freddie Mac stated that they would no longer purchase mortgage loans secured by properties with outstanding PACE loans. This stopped residential PACE programs.

Since 2010, a number of developments have facilitated a resurgence of residential PACE programs in California – including the passage of state legislation (SB 555), the implementation of legal instruments to address FHFA concerns and disclose the consequence a PACE lien can have on an existing mortgage, and the establishment of a PACE loss reserve program. Many cities and counties now have PACE programs for all three sectors (residential, commercial and municipal).

For more details, read Residential and Commercial Property Assessed Clean Energy (PACE) Financing in California, a report prepared for CSE under the U.S. Department of Energy’s Rooftop Solar Challenge Program.The Department of Energy (DOE) published Best Practice Guidelines For Residential Pace Financing Programs (updated 7/16/16), which provides additional insight into effective PACE program design and consumer protection. 

(Background information provided by the Center for Sustainable Energy, CA).