PROPERTY-ASSESSED CLEAN ENERGY

By many measures, the financing programs referred to as PACE - or property-assessed clean energy - are among the most successful energy-efficiency financing tools in U.S. history. PACE programs for residential homes in 2015 were only available in California and two other states, but according to the SEIA today, 28 states and the District of Columbia have authorized the creation of PACE programs.

PACE programs, which fund building efficiency upgrades and rooftop solar panels through loans paid off in tandem with property taxes, are closing in on $4 billion in transactions across 140,000 American homes, and have created 35,000 jobs.

But as with any new initiative, if you’ve read any number of headlines on the model in recent months, you may be more circumspect about PACE's prospects.

The major companies that issue the PACE financing and work with local governments to implement the programs are listening to the criticisms, even if they don’t always agree with them. This year, the industry is heavily focused on improving regulations and implementing more rules around how PACE should operate to protect consumers and potentially achieve energy-reduction goals.

PACE programs for commercial buildings are operating in dozens of states, and while smaller in volume, they have fomented relatively little controversy.

The following is a list of lenders who specialize in financing home improvement type loans.

Top Pace Lenders

• Renovate America Inc
• Ygrene Energy Fund
• Renew Financial Inc

Top Home Improvement Lenders

• Home Loan Investment Bank
• Admirals Bank
• AmeriFirst
• Dividend Solar
• EnerBank USA
• Green Sky Credit
• Medallion Bank
• Mosaic
• Primary Residential Mortgage
• Provident Credit Union
• RAMCO Holdings, LLC

BORROWERS DEFAULTING ON THEIR PACE LOANS

According to the WSJ, loan defaults in a popular program meant to finance energy-saving home upgrades have increased substantially, despite lenders’ claims that few borrowers have missed payments, writes Kirsten Grind.

“PACE, a nationwide initiative designed to help people afford solar panels, energy-efficient air-conditioners and other “green” appliances. PACE loans are among the fastest-growing types of loans in the U.S.,” the Journal reports.

A Wall Street Journal analysis of tax data in 40 counties in California—by far the biggest market for PACE loans—shows that defaults have jumped over the last year.

The average PACE loan is about $25,000. But unpaid balances get bigger quickly; they accrue additional interest at the rate of 18% annually. But private lenders, including Renovate America Inc., Ygrene Energy Fund and Renew Financial Inc., say the overall default rate of less than 2% provided by the Journal’s analysis is in line with the rate for people who miss property-tax payments.

“Wall Street is hungry for bonds made from PACE loans. In July, asset managers and pension funds piled into a $205 million deal from the largest PACE lender, Renovate America. It was the company’s 11th securitization since its 2008 founding,” the Journal reports.

About Us: CARBON RECALL® is an Atlanta based clean, renewable energy services company. We provide our partners the opportunity to offer the nations only complete solar energy franchise system to their local residential and commercial property clients. Click one of the links below to view our franchise, or to request more information.