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PACE financing for solar?

asked 2015-08-09 19:34:45 -0500

anandniyer gravatar image

PACE seems to be a good way to go for financing with low fixed rates which does NOT depend on credit score. https://en.wikipedia.org/wiki/PACE_financing

but looks like there are some issues related to re-financing wherein you need to repay fully, before they will allow it. see NYTIMES article here: http://green.blogs.nytimes.com/2010/08/31/homeowners-must-pay-off-energy-improvement-loans/?_r=0

so question is whether it is still good for solar financing over

  1. Home equity loan
  2. home equity line of credit
  3. unsecured loan

Does EnergySage have some "sage" advice for homeowners wanting to own solar ??

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answered 2015-08-10 14:35:11 -0500

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updated 2015-08-10 14:35:11 -0500

We've got lots of information about using a loan to buy a solar energy system, in the Learn Section of our website. Let us know if it helps!

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answered 2015-09-04 05:35:34 -0500

this post is marked as community wiki

This post is a wiki. Anyone with karma >75 is welcome to improve it.

updated 2015-09-04 05:35:34 -0500

It seems to me that the problem with PACE programs is in the high rate of interest. A 20 year loan is in the 8-8.5% range. Even a 5 year term is in the 6-7% range. Considering that mortgage interest rates have been closer to 3% for many years, the high-priced PACE loan programs seem usurious, if not predatory. Interest rates should be commensurate with risk. In the case of PACE, it is hard to imagine any better security for the lender. PACE programs require the homeowner to have substantial equity, and payments are paid along with property taxes. With these factors in mind, shouldn't PACE loan rates be substantially lower? Perhaps the good folks at Energy Sage could weigh in on this, and perhaps lobby for low interest federal funding for PACE.

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Asked: 2015-08-09 19:34:45 -0500

Seen: 4,621 times

Last updated: Sep 04 '15