The San Diego County Board of Supervisors voted this week to make PACE financing more accessible for solar and other renewable energy and conservation investments.
Property Assessed Clean Energy allows commercial property owners to borrow money to invest in solar and other renewable energy projects based on their property values and repay their loans through their property taxes. Business owners can typically borrow up to 10 percent of their property value for energy improvements and solar energy investments.
The programs fell out of favor for residential applications after Fannie Mae and Freddie Mac took issue with them.
However, PACE financing has survived for commercial properties and has started to make a comeback for residential clean energy financing in some areas. The financing model is widely praised for its ease to property owners and has been becoming more prevalent as regional governments pass local legislation making PACE financing easier. Read more.