While practices such as conserving energy and water can benefit the environment and reduce your utility costs, major upgrades like solar panels or drought-resistant landscaping can impact your budget. A Property Assessed Clean Energy (PACE) loan is a viable option for funding that makes affording long-term loans accessible for many property owners.
PACE is a financing option for clean energy projects in which the property owner will repay the borrowed funds with their
property taxes. If the property owner has not completed payments before they move to another property, the loan becomes the responsibility of the new property owner.
Receiving approval for a PACE loan depends on the equity of the property undergoing the project. Since the property’s equity will also serve as collateral, the property owner’s credit score does not play as large a role in the approval process compared to traditional financing.
The benefits of using a PACE loan will vary depending on the project. Some tips to ensure you are receiving the most benefit from your PACE loan include:
After learning about PACE loans from a contractor, have another conversation with the lender or PACE financing organization. This discussion will help you understand the pros and cons of applying for PACE loans and your payments.
Browse other PACE loan options from other providers before making your final decision. Fees such as interest rates and closing costs will vary depending on the provider you choose.
Before finalizing your loan, learn what interest rate you can expect during repayment. It’s also essential to understand the terms of the lien that a PACE loan will place on your property.
Take some time to ensure you are saving money upfront and with future payments by choosing the most competitive contractor. Receiving multiple quotes allows you to compare and confirm that you have the best deal.
Remember that you always have the option to pay for what you can in cash to lower the amount of the PACE loan. While this may delay your project, it will help you save money on interest.
SitelogIQ’s PACE financing consultants will assist you throughout the application process. Our expert team will work to find a cost-effective solution that delivers the most value for your green energy project. With our more than two decades in PACE consulting, you can trust our team to deliver results that provide the most value.
Start the application process for the PACE energy program with SitelogIQ. Complete our online contact form or call one of our representatives at 888-819-0041 to start working with us today!