What Is PACE Financing? A Bay Area Guide for Roofing and Solar Projects

PACE financing has become a popular way for Bay Area homeowners to upgrade their homes without draining cash reserves. At Home Pro Roofing and Solar, many of our clients use PACE to cover roof replacements, solar panel installations, battery backup systems, and solar panel removal and reinstallation during roofing projects.

If you are in Sunnyvale, Mountain View, Los Altos, Palo Alto, Cupertino, Santa Clara, San Jose, San Carlos, Belmont, Redwood City, or San Mateo, this guide gives you a clear understanding of how PACE works and whether it makes sense for your home.

What Does PACE Stand For?

PACE stands for Property Assessed Clean Energy.
It allows homeowners to finance energy-efficient and renewable improvements and repay the cost through their property tax bill instead of a traditional loan.

PACE can fund upgrades including:

  • Roof replacement
  • Energy-efficient roofing such as cool roof systems
  • Solar panel installations
  • Solar battery backup systems
  • Solar removal and reinstallation during reroofing
  • Attic insulation and ventilation
  • High-efficiency windows, HVAC, and more

Before starting a major project, learn why working with a licensed roofing expert protects your long-term investment.

How PACE Financing Started

PACE originated in Berkeley, California, where the city used property-tax-based financing to fund underground utility improvements. The program expanded in 2008 when legislation allowed cities and counties to offer PACE financing for energy-efficiency and renewable energy projects.

Today:

  • Residential PACE is available in California, Florida, and Missouri
  • Commercial PACE operates in more than 35 states
  • California remains the largest residential PACE market, especially in communities across Santa Clara and San Mateo counties

Why Bay Area Homeowners Choose PACE

PACE supports key long-term home upgrades that often come with higher upfront costs. Homeowners throughout Sunnyvale, Mountain View, Los Altos Hills, Palo Alto, Saratoga, Cupertino, Santa Clara, and Redwood City use PACE because it:
  • Offers no-money-down financing
  • Helps fund large projects like roofs and solar
  • Spreads payments over 5 to 30 years
  • Doesn’t require a minimum FICO score
  • Helps cities meet energy-reduction goals
  • Can stay with the property if you sell (subject to lender approval)
If you need a roof that supports solar, our team handles full roof replacement services including solar removal and reinstallation.

How PACE Financing Works

PACE payments are made through your property tax bill, appearing as a separate line item. Your payment schedule aligns with how you already pay taxes:
  • Annual
  • Semi-annual
  • Or monthly through your impound/escrow account
If your project finishes after June, you may not owe your first payment until November of the following year, giving you as much as 18 months before repayment begins.

What You Can Finance With PACE

PACE financing can fund a wide range of improvements, including:

Roofing and Energy-Efficient Roofing

  • Full roof replacement
  • Cool roof shingles such as CertainTeed Solaris or GAF Cool Roof
  • Decking, underlayment, ridge vents, insulation improvements

Solar Energy and Battery Backup

  • Solar panel installations
  • Solar battery storage, including Tesla Powerwall 3
  • Solar panel removal and reinstallation for reroofing

Other Eligible Energy Improvements

  • High-efficiency HVAC
  • Windows and doors
  • Attic insulation
  • Water-efficient landscaping

PACE Terms, Fees, and Interest Rates

PACE financing offers:

  • Terms from 5 to 30 years, depending on the project lifespan
  • Fixed, competitive interest rates
  • Origination and administrative fees
  • Up to 100 percent financing, often up to $250,000, depending on equity
  • Eligibility based on home equity, stable income, and no recent mortgage defaults

Unlike HELOCs or traditional loans, PACE is not credit-score driven.

Pros and Cons of PACE Financing

Advantages

  • No upfront payment
  • Long, flexible repayment terms
  • Financing based on equity, not credit score
  • May transfer to new homeowners (case-by-case lender approval)
  • Helps fund high-cost improvements like roofs and solar
  • Can increase property value
  • Can reduce utility bills when paired with solar or energy-efficient upgrades

Potential Drawbacks

  • Adds a lien to your property tax bill
  • Slightly higher interest rates than HELOCs
  • Available only in participating cities/counties
  • Requires understanding of tax-based repayment
  • Buyer’s lender may require payoff during a home sale

Who Is a Good Candidate for PACE?

PACE works well for homeowners who:

  • Have at least 10 percent home equity
  • Want to avoid upfront costs
  • Need major improvements such as roofing or solar
  • Prefer predictable fixed payments
  • Want to spread the cost over the life of the improvement
  • Live in participating areas such as Sunnyvale, Mountain View, Los Altos, Palo Alto, Saratoga, Cupertino, Santa Clara, San Jose, Redwood City, or San Mateo

Home Pro Roofing and Solar: Your Partner for PACE Projects

Our team specializes in:

  • Roof replacement
  • Solar installations
  • Battery backups
  • Solar panel removal and reinstallation

We serve homeowners across Sunnyvale, Mountain View, Los Altos Hills, Palo Alto, Cupertino, Santa Clara, San Jose, San Carlos, Belmont, Redwood City, and San Mateo.

If you're considering PACE financing for your roof, solar, or energy-efficient upgrades, we can walk you through the process and ensure the project is done right.

Explore more resources in our licensed roofing expert learning center.

Ready to See If PACE Financing Is Right for You?

Contact Home Pro Roofing and Solar to learn whether PACE financing makes sense for your upcoming project. Our team can help you compare PACE with other financing options and choose the best fit for your long-term goals.

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