PACE is an acronym that stands for “Property-Assessed Clean Energy.” PACE programs offer the latest in financing home improvement projects, like the installation of residential roofing systems. If the project propels the property to operate in a more energy-efficient and resilient way, the property owner will be eligible for PACE financing. PACE programs allow homeowners to finance these projects promoting energy efficiency at low fixed payments without having to pay upfront or having to take out an equity loan.
With PACE, the cost of the improvements is added to your property tax bill over the course of several years. This translates to smaller payments compared to traditional credit-based financing. Plus, the payments made on your property tax bill may be tax-deductible.
What else should you know about PACE financing before signing up? Here are a few insights provided by the Ygrene Energy Fund.
The PACE financing program avoids the property owner having to pay upfront expenses by allowing them to finance the home improvement project as a property tax assessment. The installment plan does account for interest and applicable fees, but it gives property owners the opportunity to pay off the renovation over time. According to PACENation, “PACE pays for 100% of a project’s costs and is repaid for up to 20 years with an assessment added to the property’s tax bill.”
Additionally, PACE assessments are regarded as a debt of property, not a personal debt. This debt of property is claimed by way of a lien on the property, meaning the assessment is transferable to a future owner of that same residential property. For example, if a property owner invests in a new roofing system financed by the PACE program, that lien can be transferred if the owner decides to sell the property the next year.
If a property owner cannot pay off a home improvement project right away, PACE financing might be a suitable solution. The program allows for a lengthy payback period with some arrangements as long as 20 years.
When funding an energy-efficient home improvement project, like a new roofing system, always consider every option available to you. Be sure to work with a professional roofing company that supports credible avenues that bring your home improvement project to life. For more information regarding the opportunities provided by Ygrene’s PACE financing program, contact All American Roofing at 954-772-ROOF(7663).
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