MISSOURI FORUM
By Erin Noble
In May, the Missouri General Assembly passed Property Assessed Clean Energy (PACE), a green jobs proposal that makes going green even easier for Missourians.
Up-front cash is often the main barrier preventing people from pursuing efficiency or renewable energy projects like replacing an old HVAC system or installing solar panels. The PACE program creates a huge new market for upgrades and thousands of green jobs in Missouri. The yearly savings on energy bills from the PACE projects outweigh their yearly property assessment, which makes these upgrade projects immediately cost effective.
So how does it work? The PACE program is a financing tool that allows homeowners to pay for energy efficiency improvements and renewable energy installations through a property assessment on their taxes over 20 years. The PACE model provides little risk for lenders as the loans are assessed to the property, carry a fixed interest rate, and stay with the house so if the owner moves the person who purchases the property becomes responsible for the remaining amount.
Up-front cash is often the main barrier preventing people from pursuing efficiency or renewable energy projects like replacing an old HVAC system or installing solar panels. The PACE program creates a huge new market for upgrades and thousands of green jobs in Missouri. The yearly savings on energy bills from the PACE projects outweigh their yearly property assessment, which makes these upgrade projects immediately cost effective.
So how does it work? The PACE program is a financing tool that allows homeowners to pay for energy efficiency improvements and renewable energy installations through a property assessment on their taxes over 20 years. The PACE model provides little risk for lenders as the loans are assessed to the property, carry a fixed interest rate, and stay with the house so if the owner moves the person who purchases the property becomes responsible for the remaining amount.
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