The common sense clean energy initiative known as PACE (Property Assessed Clean Energy bonds) is one step closer to becoming law in Maine. This past February, the Joint Standing Committee on Utilities and Energy unanimously approved LD1717 “An Act to Increase the Affordability of Clean Energy for Homeowners and Businesses”, or PACE.
So, what exactly is PACE and why is it important? The concept is this: a municipality, which typically has access to affordable capital, lends money to property owners for clean energy improvements. These improvements, and the loan, then stay with the property no matter who the owner may be.
A PACE program is important because it addresses two key roadblocks to investing in clean and renewable energy. First, it creates another reliable venue for financing of projects for homeowners and small businesses. Second, because the improvements and the loan stay with the property, PACE financing removes the risk associated with not knowing if you are going to stay in a particular home for the period of the clean energy loan.
For example, in Berkeley California (and in 17 states and countless communities around the country) a property owner could apply for a loan through the city of Berkeley for a Solar Photovoltaic system. The property owner would pay the municipality each year, just like any other loan (though typically over 20 years). But with PACE legislation if the property owner sells the property, the clean energy improvement and loan would stay with the property. The new owners would then continue to pay the debt and get the continued benefit of the renewable energy Solar PV system.
This legislation is a critically important piece of the clean energy puzzle for many in Maine. While Maine's PACE system would be strictly an OPT IN program for municipalities, there are several towns and cities in Maine who are waiting for this legislation to pass so they can implement their own programs and investment in their communities.
I have been privileged to participate in the forming of this legislation for Maine. And while no single legislation is a magic wand, I am excited to add PACE financing to the tool kit for those interested in renewable energy. I will make sure to keep you posted as LD1717 progresses and look forward to letting you know when it becomes law.
For more information visit www.pacenow.org
Here is a photo of an off grid Solar PV install in Whiting Maine:
