In addition to making the planet greener and cleaner, a solar power system significantly reduces your monthly electric bills. These massive cost savings combined with very attractive State and Federal incentives means there has never been a better time to go solar.
However, what if you do not currently have the cash-on-hand to invest in solar for your home or business? That is where Property Assessed Clean Energy (PACE) financing might be the ideal solution!
What is PACE Financing?
PACE financing is a government-backed loan program that is designed to help property owners (both residential and commercial) cover 100% of the up-front costs of clean energy improvements such solar. PACE financing has been available in California since 2008, where it is very popular and successful. Through a network of authorized and established lenders such as AllianceNRG, Renew Financial, Ygrene and others, PACE financing program is now available to property owners in Florida and Missouri. Other states are actively seeking to participate, and it will likely be available across the country in most or all states in the coming years.
How PACE Financing Works
Unlike a conventional bank loan that is paid back weekly, bi-weekly or monthly, PACE financing is repaid through your annual or semi-annual property tax bills over a long period of time — usually 10 to 20 years. As noted above, PACE financing covers the entire cost of installing a new home or commercial solar power system.
Bad Credit is OK
One of the most important benefits of PACE financing is that loan assessments are based on property values, and not on credit scores. In fact, there is no credit check at all. As such, if you have "dinged" credit, then do not worry: this will not prevent you from getting the cash you need.
No Additional Collateral
Conventional bank loans are typically secured with collateral, such as vehicles, investments and equipment (for business borrowers). However, there is no additional collateral needed to obtain PACE financing. Your property serves as security for the loan.
Financing is Linked to the Property
Another key benefit of PACE financing is that the loan is linked to your property, and not to you individually. As such, if you choose to sell your home or business property down the road, then you can also transfer the repayment obligation to the new owner (provided that they accept the obligation, and also provided that the new first mortgage holder allows the PACE obligation to remain on the property).
It is also worth noting that a state-of-the-art solar power system should make your property very attractive to future buyers, and can therefore help you sell it easier, faster and for more money than comparable properties without solar.
Qualifying for PACE Financing
In order to qualify for PACE financing, you must have at least 10% equity in your property, and have a history of making timely mortgage payments. In addition, you must not be in bankruptcy, or have been discharged from bankruptcy in the last two years.
To learn more about PACE financing, and how it can help you make the planet greener and zero out your electricity bill, contact Harrimans Inc. – Solar Energy Systems today for your FREE no-obligation consultation. Simply call us toll-free at 866-777-WARM (9276) or send us a message.