Key PACE Components
• Innovative
financing mechanism for energy improvements through the creation of a
Special
municipal assessment district.
• Costs the town and the
residents NOTHING except for those who use the program.
• PACE
focuses on residential energy efficiency and renewable energy improvements.
Major Benefits of PACE Program
• Provides
an alternative form of financing for energy efficiency and renewable energy –
especially
for people with limited ability to borrow money.
• Investments
in energy efficiency and renewable energy support the creation of local jobs
– such
as weatherization contractors and solar installers. The more financing
opportunities
available – the more energy work for local, qualified contractors.
Basic Program Mechanics
1.
A property owner identifies specific energy improvement(s) to make, and applies
for the program.
2.
If approved, the property owner enters into an assessment contract with
Cavendish,
which
pays the contractor when work is complete and places a lien on the property.
3.
The property owner repays the town as an assessment on the property tax bill
over 10, 15, or 20 years, on the same schedule as the town’s tax bill and
collected in the same
manner.
If the property is sold before the assessment is fully paid, the obligation to
pay
stays
with the property and it is repaid by the new owner, or it can be paid off in
full
with
no penalty.
Program Administration
Cavendish
can administer PACE or it can contract with Efficiency Vermont to perform
most
of the administrative functions. The service costs are incorporated into the
assessments
charged to program participants and are not borne by the taxpayers.
Amount of Financing Available Per Home
The
maximum amount that can be financed is 15% of the assessed value of the
property,
capped
at $30,000. The total amount financed by PACE plus any outstanding mortgages
on
the property cannot exceed 90% of the assessed value.
Eligible Energy Projects
• PACE
can finance renewable energy or energy efficiency improvements as well as
repair
or
health and safety measures that may be required to secure the energy savings.
• Improvements
must be permanently attached to the property and the “net energy”
requirements
for the building must be actually reduced. Efficiency projects include
insulation,
air sealing, windows, doors, heating systems, etc.
• Eligible
renewable energy projects include solar hot water systems, biomass energy
heating
systems (e.g. wood pellets/chips and cord wood), small wind systems,
microhydro, solar electric system (photovoltaic), and solar space heating
systems.
Town
Meeting Vote
Voters
at town meeting must approve establishing a PACE district. Voters are not
approving
the expenditure of any funds or approving their own participation in the
program.
An affirmative vote creates the district and thus the opportunity for residents
who decide to do so -- to take advantage of the PACE
financing mechanism.
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