It’s important to know your financing options when making major home improvement purchases, such as a solar (PV) system.
Before the global financial downturn, a Home Equity Line of credit was the most popular way for homeowners in Southern California to finance their renewable energy investment. Needless to say, that option isn’t as readily available these days. It’s still a good option, if you can secure the loan.
A new option is on the horizon in Los Angeles County—PACE
PACE financing involves borrowing money from the county to pay for energy efficiency improvements to your home or business. The twenty-year loan is added to your property value and paid back through twice-yearly property tax bills. PACE loans are below market, do not require that you have equity in the property and do not require a minimum FICO score.
PACE financing makes solar energy much more affordable up front and therefore more accessible to the average homeowner in Southern California.
This solution also saves homeowners from continuing to make payments on a solar system if they move. The new homeowner assumes the loan along with the rest of their property assessments.
More solar means fewer green house gas emissions and less dependency on fossil fuels and dirty power plants.
More information about PACE in California is available at votesolar.org.
PaceFinancing.org dedicates a page of their website to the progress of PACE financing in Los Angeles County. Since this is a hot topic with new developments coming in weekly, we recommend that you visit this website to get the most recent updates.