What is “PACE?”
Pace stands for “property assessed clean energy.” It’s an industry organization that helps contractors and consumers finance projects. What the Pace program does is uses a bond program to finance energy efficiency projects in the residential & commercial world. Once a municipality’s financial district adopts the bond program, bonds can be issued. So homeowners or building owners who are adding energy efficient improvements can be granted loans through the pace program. The unique thing about the program is that the property owners are able to repay the loans with (obvious interest) over 20 years based on an annual assessment that goes onto their property taxes.
Why it’s a Good Thing
By doing it this way the pace loan program allows contractors to get over the two common hurdles for owners which are: upfront cost and the possibility of those costs not being recovered if the property was to be sold.
Pace allows them to install energy-efficient upgrades now and pay later. If the property happens to be sold before the repayment has been made then the remaining tax liability becomes part of the property’s new tax bill and the new owner just takes it over.
With credit being a serious thing in the Economy today, and having cash flow tightened, this type of program is a great alternative to traditional financing. If it’s offered in your area you should be taking advantage of it as often as possible. Your clients will be able to make the payments even easier by reaping the benefits of the energy-efficient upgrades that you are installing such a spray foam or cool roof coatings.
Unfortunately…
The only thing holding pace back is that it requires state by state approvals to create legislation to have their own pace programs, which is a slow process. PACE-enabling legislation is active in 36 states plus D.C., and PACE programs are now active (launched and operating) in 20 states plus D.C.
In states where the pace program is available a contractor should be doing their due diligence on educating their clients about the programs benefits. Contractors who do not have the pace program available need to for the benefit of the whole industry, encourage their state to pass the pace bond program.
Let’s Work Together to Pick up the Pace
If we can all come together as advocates we can get this program adopted across the entire United States and allow our clients to take advantage of the benefits of it. With the added ability to sell more jobs and building owners to be able to have the work completed, we can even add more economic benefit by creating new jobs.
Another benefit to the program is for the actual local governments benefit, which is that the program provides new revenue sources through interest charges that go out on the loans. Although the interest is minimal with added quantity they can add up to substantial stimulation for local economies.
So let’s gather together to get the Fluid Applied Roof Restoration Industry up to PACE and saving roofs & saving dollars one roof at a time.
Chad Hedrick, Roof Coating Life
“We Bleed White”