PACE Solar Financing in California: An Honest Look

PACE Financing for Roofing, Solar, and Battery Projects in Santa Clara and San Mateo Counties

PACE financing can help California homeowners complete qualifying roofing, solar, battery, and other home-energy projects without paying the full project cost upfront.

PACE stands for Property Assessed Clean Energy. Instead of making payments through a standard personal loan, the homeowner repays the financed amount through a special assessment added to the property tax bill.

PACE can be useful for the right homeowner, especially when an important project needs to be completed now and other financing options are not a good fit.

It is not free financing. The assessment increases the property tax bill and is secured by the property. Homeowners should understand the total cost, annual payment, payoff terms, and possible effect on a future sale or refinance before signing.

Home Pro Roofing and Solar can help you compare PACE with traditional loans, solar PPAs, leases, cash payment, and our Prepaid Solar PPA.

Financing notice: PACE financing is subject to program approval, property eligibility, and current terms. Home Pro Roofing and Solar is not a lender, tax advisor, attorney, mortgage advisor, or financial advisor. Review all financing disclosures and consult the appropriate qualified professionals before making a decision.

Updated July 2026

What Is PACE Financing?

PACE financing is a way to finance eligible improvements to a home through a special assessment on the property.

The project is funded at the beginning. The homeowner then repays the financing through additional charges on the property tax bill.

PACE is different from a standard home-improvement loan because:

The repayment obligation is connected to the property.
The payment is collected through the property tax system.
A lien is recorded against the property until the assessment is paid.
Approval includes a review of the property, project eligibility, and the homeowner’s ability to make the payments.
Program availability depends on the city, county, property, and current financing rules.

The California Department of Financial Protection and Innovation, commonly called the DFPI, regulates PACE program administrators and provides consumer information about PACE contracts. The DFPI makes clear that PACE is not a free government program and that the added assessment must be repaid through increased property taxes.

How PACE Repayment Works

A PACE project generally follows this process:

1. The Homeowner Selects an Eligible Project

The homeowner works with a registered contractor to identify the improvements, equipment, and construction scope.

The project must meet the PACE program’s eligibility rules.

2. The Homeowner Applies for PACE Financing

The program administrator reviews the property, requested financing, household financial information, property-tax status, mortgage-payment history, and ability to make the increased annual payments.

California law requires the administrator to determine that the homeowner has a reasonable ability to repay the assessment before work begins.

3. The Project Is Approved and Completed

After approval and completion of the required documents, the contractor performs the work.

The homeowner should inspect the completed work carefully before approving final payment to the contractor.

4. The Assessment Is Added to the Property Tax Bill

The homeowner repays the financing through a special assessment collected with the property taxes.

The payment may appear in one or more installments during the year, depending on how the county collects property taxes.

The assessment remains attached to the property until it is paid in full or otherwise resolved under the financing agreement.

What Home Pro Projects May Qualify for PACE?

Project eligibility depends on the PACE provider, property address, local program, and current rules.

Home Pro projects that may qualify include:

Roof Replacement

A qualifying roof project may include:

Complete roof replacement
Cool-roof materials
Roofing needed to support a solar installation
Eligible insulation or energy-related roof components
Solar-panel removal and reinstallation when included in an approved project

Solar Installation

PACE may be available for a new solar installation, including eligible electrical and installation costs.

A solar proposal should still be based on the homeowner’s actual electricity use, roof condition, utility company, and long-term goals.

Battery Backup

Eligible battery-storage or batter backup projects may include:

A battery installed with new solar
A battery added to a qualifying existing solar system
Backup controls and related electrical work
Certain battery-only projects, when permitted by the program

EV Charger Installation

An eligible Level 2 electric-vehicle charger and related electrical work may qualify, depending on the program and project.

Combined Roofing, Solar, Battery, and EV Projects

PACE may allow several eligible improvements to be financed together.

Home Pro can coordinate the construction, but roofing, solar, battery, and electrical work may still have separate:

Contracts or scopes
Permits
Inspections
Manufacturer warranties
Workmanship warranties
Project schedules

One coordinated project does not mean that every part shares one permit or one warranty.

Benefits of PACE Financing

Little or No Initial Payment

PACE may allow a homeowner to finance the eligible project cost instead of paying the full amount upfront.

This can be helpful when a roof, solar system, battery, or other improvement is needed now.

“No money down” does not mean free. The project cost, interest, fees, and other charges are repaid through the property tax assessment.

Longer Repayment Options May Be Available

PACE programs may offer longer repayment periods than some unsecured home-improvement loans.

A longer term may reduce the scheduled annual payment, but it may also increase the total interest and financing cost over time.

Always compare:

Amount financed
Annual payment
Interest rate
Fees
Repayment term
Total of all payments
Early-payoff amount

Repayment Through the Property Tax Bill

Some homeowners prefer having the repayment collected through their property taxes rather than making a separate monthly loan payment.

Homeowners who use a mortgage escrow account should ask how the added assessment will affect their monthly mortgage escrow payment.

Several Eligible Improvements May Be Combined

PACE may be useful when the homeowner wants to complete more than one qualifying improvement, such as:

Roof replacement and solar
Solar and battery storage
Roofing, solar, battery, and EV charging
Solar removal and reinstallation during a reroof

Each improvement must be approved under the program.

Qualification Is Not Based Only on a Traditional Credit Score

PACE approval is not based only on a FICO score.

The program administrator must review the homeowner’s reasonable ability to pay. That review may include income, assets, debt obligations, household expenses, mortgage-payment history, property taxes, property value, and the requested financing amount.

Do not describe PACE as “no credit check” or guaranteed approval.

Important PACE Terms and Tradeoffs to Understand

PACE can be useful, but homeowners should understand its structure before choosing it.

Your Total Property Tax Bill Will Increase

The annual PACE assessment is added to the property tax bill.

Ask for a written estimate showing:

Current annual property taxes
New annual PACE assessment
Estimated combined property-tax obligation
Assessment term
Total repayment amount

Homeowners with mortgage escrow accounts may see their monthly escrow payment increase after the servicer adjusts for the higher tax bill.

PACE Creates a Lien Against the Property

PACE financing is secured through a lien or assessment recorded against the property.

The DFPI warns that a PACE lien may make selling or refinancing more complicated. A mortgage lender or buyer may require the assessment to be paid before a transaction can close.

A Longer Term Can Increase the Total Cost

A longer repayment period may make the annual payment easier to manage.

However, spreading payments over many years can increase the total amount paid.

Do not compare financing options using only the annual or monthly payment. Compare the full cost over the entire term.

Rates and Fees Vary

Interest rates, program fees, recording costs, administrative charges, and repayment terms can change.

Home Pro should not publish a fixed rate or fee range unless it comes from a current, property-specific financing proposal.

PACE Is Difficult to Cancel After Funding

A PACE contract is a binding financing agreement.

The DFPI notes that PACE contracts can be difficult to void after they are signed and funded. Homeowners should review the full agreement, including cancellation rights, before approving the financing.

Do Not Approve Work Before It Is Complete

Review the completed project before signing any completion certificate or approving final contractor payment.

Confirm that:

The agreed equipment was installed.
The work matches the written contract.
Required permits were obtained.
Inspections were completed or scheduled.
The system operates as promised.
Any remaining work is documented in writing.

What Happens When You Sell or Refinance?

PACE does not automatically prevent a homeowner from selling or refinancing.

However, the assessment must be addressed.

Depending on the lender, buyer, financing program, and transaction, the homeowner may need to:

Pay off the PACE assessment
Request a payoff statement
Obtain approval to transfer or continue the assessment
Provide PACE documents to the buyer
Work with the mortgage lender
Coordinate through escrow
Resolve any property-tax or lien questions before closing

Do not assume that the next homeowner will automatically accept the assessment.

Before choosing PACE, ask:

What happens if I sell the home?
Can the assessment transfer?
Can a mortgage lender require payoff?
Is there a prepayment fee?
How is the payoff amount calculated?
How long does it take to receive a payoff statement?
Who releases the lien after payoff?
What documents will escrow need?

If you expect to sell or refinance soon, discuss the proposed PACE assessment with your mortgage lender before signing.

Home Improvement and Solar Financing Comparison
Option	Upfront Payment	Repayment	Ownership	Important Considerations
PACE Financing	Often little or none	Special assessment paid through the property tax bill	Homeowner owns the installed improvements	Creates a property assessment and lien. Review total cost, property-tax increase, sale, refinance, and early-payoff terms.
Traditional Home Improvement Loan	Varies by lender	Monthly loan payment	Homeowner	Compare interest rate, lender fees, term, security interest, credit requirements, and total payments.
Prepaid Solar PPA	One prepaid amount, which may be paid with cash or financing	No monthly PPA payment. A separate loan payment applies if the prepaid amount is financed.	Third-party owner during the initial period, with a path to homeowner ownership under the signed agreement	Applies mainly to eligible solar, battery, and EV equipment, not a standalone roof replacement. Review ownership, transfer, service, and home-sale terms.
Monthly Solar PPA or Lease	Often little or none	Monthly energy or lease payment	Third-party provider	Solar product only. Review agreement length, escalator, equipment coverage, transfer, buyout, and end-of-term terms.
Cash Purchase	Full project cost	No financing payment	Homeowner	Simple ownership and no interest expense, but requires enough available cash for the project.

The best financing option depends on the project, available cash, credit profile, expected time in the home, desired ownership structure, and total long-term cost. Home Pro can present the available options, but the homeowner should make the final financing decision after reviewing the applicable agreements.

When PACE May Be a Good Fit

PACE may be worth considering when:

A qualifying roof or energy project needs to be completed soon.
Paying the full cost upfront is not practical.
The homeowner prefers repayment through property taxes.
A longer repayment structure is useful.
The homeowner expects to remain in the property long enough to benefit.
The total PACE cost compares reasonably with other available financing.
The homeowner understands the effect on the property, taxes, sale, and refinance.
The annual assessment fits comfortably within the household budget.

PACE should be evaluated as one financing option, not automatically treated as the first or last choice.

When Another Financing Option May Be Better

Another option may fit better when:

The homeowner expects to sell or refinance soon.
Avoiding a property lien is important.
A traditional loan offers a lower total cost.
The homeowner can pay cash without affecting emergency savings.
A solar PPA or lease provides a better zero-upfront structure.
The Prepaid Solar PPA provides stronger savings for the eligible solar and battery portion.
The homeowner wants a shorter repayment term.
The annual property-tax increase would be difficult to manage.
The homeowner does not fully understand the PACE agreement.

Home Pro can compare the construction and payment options without presenting PACE as the right choice for every homeowner.

Home Pro Is an Approved Renew Financial Contractor

Home Pro Roofing and Solar is listed in Renew Financial's contractor directory for roofing, solar electricity, and energy-storage projects.

When PACE is available for the property and project, Home Pro can:

Prepare the construction proposal
Confirm the planned project scope
Coordinate required project documents
Work with the program during the contractor portion of the process
Complete the permitted roofing, solar, battery, or related installation
Coordinate inspections and completion documents

Renew Financial, not Home Pro, makes the financing and eligibility decisions.

Home Pro is not the lender, program administrator, tax advisor, attorney, or mortgage advisor.

Renew Financial currently lists residential PACE participating areas in both Santa Clara and San Mateo counties, including many cities served by Home Pro. Final availability still depends on the exact address, project, property, and current program rules.

Questions to Ask Before Signing a PACE Agreement

Ask for clear written answers to these questions:

What is the total amount being financed?
What fees are included?
What is the interest rate?
How long is the repayment term?
What is the annual PACE assessment?
How much will my property tax bill increase?
What is the total of all payments?
Is there a prepayment charge?
How is the payoff amount calculated?
What happens if I sell the home?
What happens if I refinance?
Will my mortgage lender require the PACE assessment to be paid?
When does the lien get released?
Which project items qualify?
Which project items do not qualify?
When is the contractor paid?
What must be completed before I sign the completion certificate?
Which permits and inspections are included?
Is every promise written in the agreement?
Who should I contact if there is a financing problem?

The DFPI recommends reviewing the term, total cost, and expected property-tax increase before signing a PACE contract.

PACE Financing Service Area

Home Pro provides roofing, solar, battery, EV charging, and related project coordination throughout Santa Clara and San Mateo counties.

PACE availability must be confirmed for the exact property address.

Santa Clara County

Home Pro serves:

Sunnyvale
Mountain View
Los Altos
Los Altos Hills
Saratoga
Palo Alto
Cupertino
Santa Clara
San Jose

San Mateo County

Home Pro serves:

Menlo Park
Redwood City
San Carlos
Belmont
Foster City
San Mateo

Frequently Asked Questions About PACE Financing

What does PACE stand for?

PACE stands for Property Assessed Clean Energy. It is a way to finance qualifying property improvements through a special assessment added to the property tax bill.

Is PACE financing a traditional loan?

No. PACE is structured as a property-based assessment rather than a standard personal loan. The repayment obligation is secured by the property and collected through the property tax system.

Does PACE put a lien on my property?

Yes. A PACE assessment is secured against the property. The lien remains until the assessment is paid or otherwise resolved under the agreement.

Is PACE a free government program?

No. PACE may provide little or no upfront payment, but the full financed amount, interest, fees, and related charges must be repaid through increased property-tax assessments.

Can PACE finance a roof replacement?

A qualifying roof replacement may be eligible, subject to the program, roofing materials, property, location, and current project requirements. Home Pro can submit the proposed scope for eligibility review.

Can PACE finance solar and battery storage?

Solar and battery-storage projects may qualify. Eligibility depends on the equipment, project scope, property address, local program participation, and current financing rules.

Can an EV charger be included?

An eligible EV charger and related electrical work may qualify, either as a standalone eligible improvement or as part of a larger approved project. Program confirmation is required.

Does PACE require a credit check?

Do not assume that PACE has no financial review. California requires the program administrator to determine the homeowner’s reasonable ability to repay. The review may include income, assets, debts, household expenses, mortgage history, property taxes, and property value.

How do I make the payments?

The PACE payment is collected as a special assessment through the property tax bill. Homeowners with mortgage escrow accounts should ask their mortgage servicer how the added assessment may affect the escrow payment.

Can I sell my home with PACE financing?

Yes, but the assessment must be addressed. Depending on the buyer, mortgage lender, and agreement, it may transfer, continue, or need to be paid off before closing.

Can I refinance while I have a PACE assessment?

Possibly, but the mortgage lender may require the assessment to be paid first. Homeowners planning to refinance should speak with their lender before choosing PACE financing.

Can I pay PACE financing off early?

Many agreements allow early payoff, but the exact process, payoff calculation, and possible charges depend on the agreement. Ask for the prepayment terms in writing before signing.

The Bottom Line

PACE financing can help homeowners complete qualifying roofing, solar, battery, and EV charging projects without paying the full project cost upfront.

It can be a useful option when the homeowner:

Understands the property-tax assessment
Can comfortably afford the increased annual tax payment
Has compared the total cost with other financing
Understands the lien
Has considered plans to sell or refinance
Has reviewed the early-payoff terms
Has received all promises in writing

PACE should not be described as free money, automatic approval, or the best choice for every homeowner.

Home Pro Roofing and Solar can prepare your project proposal and help you compare PACE with cash, traditional loans, monthly solar PPAs, leases, and the Prepaid Solar PPA.

Learn more about our financing options, or request a free roofing, solar, or battery battery estimate.

Call (800) 650-3134.

Financing information is provided for general educational purposes and is not a commitment to lend. Home Pro Roofing and Solar is not a lender, tax advisor, attorney, mortgage advisor, or financial advisor. Rates, fees, repayment terms, program eligibility, participating locations, and financing availability can change. Review the current financing disclosures and consult the appropriate qualified professionals before making a decision.