PACE Financing for Bay Area Solar Projects
Property Assessed Clean Energy financing, or PACE, is a way to pay for solar, roofing, HVAC, and other home energy projects through your property tax bill. Instead of taking a traditional loan, you agree to a special assessment on your property. The payment shows up as a line item on your annual property tax bill.
PACE has been around in California since 2008 and has financed billions of dollars in home energy projects. It is also one of the more controversial financing options, with a long history of complaints, lawsuits, and shifting providers. Bay Area homeowners should understand both sides before signing up.
Home Pro Roofing and Solar in Sunnyvale, CA provides roofing and solar services for Bay Area homeowners. We handle roof replacements, solar installations, and battery backup systems. We specialize in solar removal and reinstallation during reroofing. Financing available. Nearly 20 years of experience. We coordinate everything so you never manage multiple contractors. Free estimates.
How PACE Works
PACE is structured as a property tax assessment, not a personal loan. A licensed PACE administrator funds your project, and the cost is added to your property tax bill over a long term (often 20 or 30 years).
Loan amount: Up to 15% to 20% of your home's value
Terms: 5 to 30 years
Interest rates: Typically 4.75% to 9%, fixed
Origination fees: 3% to 7% of the financed amount, plus state and recording fees
Approval: Based on home equity and ability to pay, not credit score
Repayment: Through twice-yearly installments on your property tax bill
Security: Creates a tax lien on your home with priority over your mortgage
Current PACE Providers in California
The PACE market has changed a lot in recent years. Ygrene, once one of the largest PACE companies in California, suspended all California PACE operations in October 2022 after running out of funds and facing FTC enforcement. The Los Angeles County PACE program also stopped accepting new projects.
Today, the main residential PACE providers still operating in California are:
- CaliforniaFIRST (administered by Renew Financial)
- Home Run Financing (formerly PACE Funding Group)
Each operates in different cities and counties. Coverage is not statewide, and not every city in the Bay Area participates. We help confirm whether PACE is available in your area as part of the estimate.
Why PACE Can Look Attractive
- No FICO score requirement, so homeowners with credit challenges can qualify
- 100% financing with no down payment
- Fixed interest rate for the full term
- Long terms (up to 30 years) keep monthly cost low
- Payments come through property tax bill, which can simplify cash flow
- Interest may be tax-deductible (talk to your tax person)
Why We Generally Don't Recommend PACE in 2026
PACE has serious downsides that homeowners should understand before signing.
It puts a lien on your home
The PACE assessment is secured by your property and takes priority over your mortgage. That makes it different from a typical solar loan, which is unsecured or secured against the equipment only.
It can complicate refinancing and selling
Mortgage lenders, including Fannie Mae and Freddie Mac, often require the PACE assessment to be paid off before refinancing or in some cases before a sale. This has surprised many homeowners and held up real estate transactions.
High origination fees and interest rates
Origination fees typically run 3% to 7% of the financed amount. Rates between 4.75% and 9% are higher than current credit union solar loan rates, and the long term means a lot of interest paid over the life of the loan.
Consumer protection issues
California has tightened PACE regulations significantly since 2017, but the program has a long history of complaints about misleading sales tactics, especially among elderly homeowners. Some providers have faced lawsuits or shut down entirely.
Coverage gaps
Not every Bay Area city participates in PACE. With Ygrene gone from California and Los Angeles County out of the market, finding active providers in your specific area can be hit or miss.
Better Options for Most Bay Area Homeowners
Most Bay Area homeowners can do better than PACE in 2026. We typically point clients toward these alternatives:
- Go Green Home financing: state-backed, no home lien, lower fees
- Credit union solar loans (like Wheelhouse): no dealer fees, secured against equipment only
- HELOC: low rates if you have equity, interest may be tax-deductible
- Prepaid PPA programs (HDM Capital or Participate Energy via Solar Tech): no upfront cost or upfront discount, no long-term loan on your home
- Enfin PPA through Axia by QCells or Solar Tech: zero upfront, full maintenance for 25 years
We compare all of these against PACE in your free estimate. There are situations where PACE makes sense, but they are limited.
When PACE Might Still Be the Right Fit
- You cannot qualify for any other financing because of credit issues
- You plan to stay in the home for the long term and have no plans to refinance
- Your project includes work outside what other clean energy lenders will cover
- You have substantial home equity and understand the impact of the tax lien
What to Watch For if You Pursue PACE
- Read the disclosure forms carefully, especially the comparison to traditional loans
- Ask the contractor for the cash price and compare it to the total PACE cost
- Confirm in writing whether your mortgage lender requires PACE payoff at refinance or sale
- Verify the contractor is registered with the PACE program you're using
- Take the confirmation-of-terms call seriously. It is required by California law and gives you a final chance to ask questions before the deal closes.
Cities We Serve
We are a local, woman-owned company. We serve homeowners in:
Santa Clara County Sunnyvale, Mountain View, Los Altos, Los Altos Hills, Saratoga, Palo Alto, Cupertino, Santa Clara, San Jose
San Mateo County Menlo Park, Redwood City, San Carlos, Belmont, San Mateo
Alameda County Fremont, Newark, Union City
Why Home Pro for Your Financing
Home Pro is a local, woman-owned company serving Bay Area homeowners since 2006. We can deliver work through PACE financing if it is the right fit, but we are honest about its downsides.
Working with Home Pro on any project, PACE or otherwise, gives you:
- Honest comparisons of PACE against credit union loans, Go Green Home, HELOCs, and PPAs
- Full disclosure of fees, interest costs, and lien implications
- One contractor for roof, solar, battery, and EV charger work
- One permit and one warranty across the trades we deliver
- Help confirming whether PACE is available in your specific city
Related Services
- Finance overview:
- Go Green Home financing:
- Wheelhouse Credit Union solar loan:
- HDM Capital Prepaid PPA:
- Enfin Solar PPA:
- Roofing services:
Frequently Asked Questions
What does PACE stand for? PACE stands for Property Assessed Clean Energy. It is a financing structure where the cost of qualifying home energy improvements is paid back through a special assessment on your property tax bill.
Does PACE put a lien on my house? Yes. The PACE assessment is secured by your property and takes priority over your mortgage. This is one of the key differences between PACE and a traditional solar loan.
Will PACE affect my ability to sell or refinance? It can. Many mortgage lenders, including Fannie Mae and Freddie Mac, require PACE assessments to be paid off before refinancing or sometimes before a sale. Talk to your mortgage lender before you sign a PACE agreement to understand the impact.
What credit score do I need for PACE? PACE does not require a minimum FICO score. Approval is based on home equity, mortgage payment history, and ability to repay. This makes PACE accessible to homeowners who cannot qualify for traditional loans.
Is Ygrene still active in California? No. Ygrene suspended all California PACE operations in October 2022. They continue to operate in Florida, but not in California. The main active California PACE administrators are HERO, CaliforniaFIRST, and Home Run Financing.
Is PACE available everywhere in the Bay Area? No. PACE coverage depends on which cities and counties have opted into specific PACE programs. Los Angeles County stopped accepting new projects, and not every Bay Area city participates. We confirm availability in your area during the estimate.
Why doesn't Home Pro push PACE? Because in 2026, most Bay Area homeowners have better options. PACE places a lien on your home, charges high origination fees, and can complicate refinancing or selling. Credit union loans, Go Green Home, HELOCs, and PPAs usually deliver better outcomes for the homeowner.
Can I use PACE for just a roof replacement? Yes. Many PACE programs cover cool roofs, energy-efficient roofs, and roofing work tied to a solar project. The exact list depends on the PACE administrator.
What if I have a problem with the work after PACE pays the contractor? California law requires PACE administrators to wait until project completion is confirmed by you before disbursing funds. The confirmation-of-terms call is part of the consumer protection process. If you have a complaint after the fact, you can contact the California Department of Financial Protection and Innovation (DFPI), which licenses PACE administrators.
Can I pay off PACE early? Yes, but there are sometimes prepayment penalties or fees, and the process can be slower than paying off a typical loan because the assessment runs through your property tax record. Ask the specific provider about their prepayment process.
Financing Disclaimer
All financing information on this page is provided for general informational purposes only and is not a commitment to lend. Rates, terms, loan amounts, and program availability are subject to change and vary based on creditworthiness, project scope, lender requirements, and other factors. Rates shown reflect information available as of February 2026. Contact Home Pro or the applicable lender directly for current rates and terms before making any financing decisions. Home Pro Roofing and Solar is not a lender or financial advisor. Tax credit information reflects current law as understood at the time of publication and is not tax advice. Consult a qualified tax professional regarding your specific situation.
Get a Free Financing Consultation
Before signing a PACE agreement, talk to us. We will run a side-by-side cost comparison against other options and help you avoid surprises at refinance or sale. Free estimates with no pressure. Call (800) 650-3134 or request a quote through our website.