The demand for renewable energy and improved energy efficiencies is growing at an incredible pace, with no sign of slowing. Within the residential market, 91% of buyers want an energy-star rating for the home and 89% want energy-star rated windows. The residential solar market is currently a $7 billion dollar industry and continues to expand. While homeowners want to improve efficiencies and shift to renewable energy sources, this process is expensive and the PACE program can help.
The PACE Program
PACE is the acronym for Property Assessed Clean Energy and is a program that finances loans for commercial and residential projects to increase energy efficiency, convert to renewable energy and conserve water. Through this system, PACE funds:
- New heating and cooling systems
- Lighting improvements
- Solar panels
- Water pumps
- Insulation
- Artificial Turf
- Drought-resistant landscaping
Homeowners receive 100% funding for these projects and the loan is treated as a special assessment on their property taxes. Contractors are paid for their work immediately and the property owners enjoy decreased energy bills which helps pay off the loan.
PACE’s Scope
PACE is available on a state basis though some communities have elected to start the program. The PACE residential program is thriving in California and Florida, and is also available to residents in various Missouri and New York communities.
To date, PACE has funded $2,237 million dollars to perform upgrades on 104,000 homes. Improvement types were:
- 58% on energy efficiency
- 37% on renewable energy
- 4% on water
The PACE residential program is expected to expand in the next several years as more states have enacted PACE enabling legislation and more homeowners demand funding support to make these important upgrades. Recent changes by the FHA and HUD have removed mortgage lender bias against PACE loans which will increase their popularity.
An Opportunity for Contractors
Homeowners who receive PACE loans are committed to making expensive energy-improving upgrades on their homes. Contractors that supply the required services, including solar, insulation, and window replacement companies, know that if the project is funded by PACE they will be paid.
Get ahead of your competition by utilizing DataTree to search public documents and identify homeowners who have received a PACE loan. DataTree’s with FlexSearch allows you to search specific geographic areas for a covenant document – like this one. Utilize this information to create a targeted marketing campaign to reach an audience that has both the interest in your services and the funding to complete a project.
Bottom Line
PACE allows homeowners to fund energy-related home improvement projects. The program has financed millions of dollars in renewable and energy efficient systems and is poised to expand both geographically and monetarily. Contractors can benefit from this resource by using DataTree to identify homeowners with this funding and provide the needed services. PACE benefits homeowners, service providers and the environment.