Advantages of Property-Assessed Clean Energy Financing from the Local Government Perspective
From the point of view of local governments, commercial property-assessed clean energy (PACE) financing programs offer the following advantages:
Direct support for constituents’ actions – PACE programs are a way for local governments to support climate- and environment-friendly building improvements with very little direct cost to governments beyond the high legal and administrative set-up expenses.
Job creation – This new activity stimulates the local economy and creates jobs as the solar energy and energy efficiency sectors grow.
Positive publicity – The local governments in California and Colorado that have been involved in Energy Financing Districts thus far have received positive attention from the media and local civic groups.
Safe and efficient security mechanism – The PACE financing mechanism is extremely secure due to the senior lien on the property, and delinquent special taxes and assessments are repaid before private liens in the case of foreclosure. Risk to the local government’s general fund is minimal.