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PACE Financing QC Best Practices

Colin Graf | Tuesday, June 06, 2017

PACE Financing QC Best Practices

The costs of solar panels and other energy efficiency technology has fallen and become more effective, but can still be costly. PACE financing has been created so that homeowners can pay for clean energy home improvements that can save them far more than the cost over time, and even help increase their home's value when put up for sale.

All of this may sound good, but a dark side has emerged: because PACE financing is unregulated, homeowners may not be able to afford their PACE financing payments and fall prey to abuse or poorly underwritten loans. Regulations to protect homeowners and reduce defaults may come, but it is unclear where this falls on the current administration's priority list. Thus, to reduce the risk of late payments and defaults, we recommend the following quality control (QC) best practices for PACE funders.

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