Is the PACE program worth it? In general, PACE loans have lower rates than other types of loans, because they are attached to the property itself, which means there’s less risk of default. The less risk a lender perceives, the lower the interest rate you can expect to pay for the loan.
What is PACE assessment? A Property Assessed Clean Energy (PACE) loan is a type of financing available to make energy efficiency upgrades and renewable energy improvements at a commercial or residential property.
What can a PACE loan be used for? PACE programs allow a property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment. The unique characteristic of PACE assessments is that the assessment is attached to the property rather than an individual.
How does the PACE program work in California? PACE program administrators must review the amount of financing relative to the value of the home just as in a mortgage (i.e. amount financed is no more than 15 percent of the value of the property up to the first $700,000 and is less than 10 percent of the remaining value of the property above $700,000).