Report: Solar Leasing for Residential Photovoltaic SystemsNational Renewable Energy Laboratory, February 2009This publication examines the solar lease option for residential PV systems and describes two existing solar lease programs, and helps homeowners revisit the comparison between the solar lease and home-equity financing.Publication: THIRD-PARTY RESIDENTIAL FINANCING MODELS2.4The Denver International Airport (DIA) features a 2 MW PV system. DIA is now host to a second 1.6 MW array system. (Denver International Airport/PIX18043)
Solar Powering Your Community: A Guide for Local Governments |January 2011412.5Property Assessed Clean Energy FinancingA new structure to finance renewable energyand energy efficiency investments is the property assessed clean energy(PACE) program model. A PACE program seeks to address both the up-front cost barrier to solar and the hesitancy of homeowners to make long-term investments in their homes, given that many people move every 5 to 7 years. In a PACE program, the city or county finances the up-front costs of the energy investment, either directly or as an intermediary for private investors. The property owner repays the loan over an extended period (10 to 20 years) through a special property tax assessment. PACE programs are modeled after traditional land-secured financing, so in order for this type of financing to work, local jurisdictions must have authorization to create a special assessment district or another mechanism that allows energy retrofits to be financed through property tax bills. Most states already authorize municipalities and counties to create special districts to finance “public goods” such as street beautification or sewer-system upgrades. In most states, the most straightforward method is to amend an existing special district authority to allow clean energy projects on private property. Some states have opted to create a new stand-alone law. Cities and counties in some states also have specific “charter” or “home rule” authority and can authorize PROPERTY ASSESSED CLEAN ENERGY FINANCING2.5
Solar Powering Your Community: A Guide for Local Governments |January 201142PACE programs via local ordinance. As of October 2010, 23 states plus the District of Columbia have enabling legislation that allows local governments to create clean energy financing districts. Hawaii also allows PACE based on existing law.With enabling legislation in place, a clean energy financing district is created by a local government. Individual property owners then decide whether to opt in to the district to enable financing of energy improvements on their properties. Property taxes remain the same for those who decide not to participate in the program—this is a key element in the marketing of the program. Only energy improvements that are affixed to the property are eligible under PACE programs. If a participant in the clean energy financing district sells the property, the special
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