- Third-party owner maintains and repairs the system, guarantees performance.
- Contract terms typically 20 years, with fixed monthly payments that may include annual escalator — and prepayment options.
- Early buy-out opportunities, and flexible options at end of lease term — renew, buy or return the system.
- Credit eligibility requirements typically 700 or above for residential homeowners.
- Simple interest, unsecured financing
- Long term — 20-year (or 5-, 10-, or 15-year terms for slightly better interest rates)
- Low rates — from 6.99% on 20-year loans (from 4.24% on 5-year loans)
- No balloon payments
- No pre-payment penalty
- No annual escalator
- Secured loan
- Fixed rate; fixed term
- Flexible terms for affordable payments
- Monthly payments often less than your electric bill
- Finance energy efficiency improvements, including renewable energy
- Insured through Federal Housing Authority (FHA) and Veterans Affairs (VA) programs.
- Maximum amount up to 5% of property value.
- Income requirements for FHA’s Section 203 (b), provided the applicant can meet the monthly mortgage payments.
- New and existing owner-occupied homes of up to two units can qualify. Cooperative units are not eligible.
- Allows businesses in LA County to finance energy projects and repay them through a special assessment on the business’s property taxes.
- Property must be located within Los Angeles County, and within the boundaries of a city that has adopted a resolution to join the County-wide PACE district.
- “Open market” approach where property owners may negotiate project-specific terms with the PACE investor of their choice, including banks that holds the first mortgages.
- Owners of large commercial and industrial buildings rent out roof space to third-party developer.
- Immediate source of new income without need to own and operate large-scale rooftop solar arrays.
- Option for schools, churches and tax exempt organizations with low electric bills.
- Suited to multi-tenant properties including retail/office, apartment buildings and condo homeowner associations (HOA’s).