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Type of the Solution
Finance
Affected Sector
Energy
Description of the solution
An innovative mechanism for financing energy efficiency and renewable energy improvements on private property. PACE programs exist for Commercial properties and Residential properties. The unique characteristic of PACE assessments is that the assessment is attached to the property rather than an individual.
The recent extension of this financing model to energy efficiency and renewable energy allows a property owner to implement improvements without a large up-front cash payment.
Socio-economic effects
Improve energy efficiency
Type of Measure
3. mitigation measures
Type of sub-measure
2. policy/regulation measure
Who led the solution
National government
Timescale of implementation
Short-term (up to 1 year)
Other Notes
The disadvantages include: (1) Available only to property owners; (2) Cannot finance portable items (screw-in light bulbs, standard refrigerators, etc.); (3) Can require dedicated local government staff time; (4) May require high legal and administrative setup obligations; (5) Not appropriate for investments below $2,500; (6) Potential resistance by lenders/mortgage-holders whose claims to the property may be subordinated to the unpaid assessment amount should the property go into foreclosure.
Links to the solution
Consent to share form or official link.
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