What is PACE Financing

What Is PACE Financing?

At Home Pro Roofing and Solar, we understand the importance of flexible financing options for roofing, solar installations, solar backup systems, and more. One popular option we offer is PACE Financing—a program designed to help homeowners upgrade their properties with energy-efficient improvements while keeping upfront costs manageable.

What Does PACE Stand For?

PACE stands for Property Assessed Clean Energy. This unique financing method allows homeowners to make energy-saving upgrades, such as solar power systems, energy-efficient roofing, solar backup installations, attic insulation, and even drought-tolerant landscaping. The cost is repaid through the property tax bill as a special line item.

How Did PACE Financing Begin?

PACE has roots in Northern California, specifically Berkeley, where it began as a solution for homeowners to fund underground utility projects. The concept expanded in 2008 when then-Governor Arnold Schwarzenegger signed legislation making PACE financing available for energy-efficient upgrades. Today, Residential PACE Financing is offered in California, Missouri, and Florida, with Commercial PACE active in over 35 states.

Why Choose PACE Financing?

PACE benefits cities, contractors, and homeowners alike. For cities like those we serve in Sunnyvale, Mountain View, Los Altos, Saratoga, Palo Alto, Santa Clara, Redwood City, and San Mateo, it helps meet energy reduction mandates. Contractors gain more opportunities to complete projects, and homeowners can access flexible financing to improve their homes with upgrades like roof replacement, solar installations, or solar panel removal and reinstallation during roofing projects.

How Is PACE Financing Different?

PACE Financing differs from traditional loans in that it is:

1. Based on home equity, not FICO scores (no minimum FICO required).
2. Repayable as part of the property tax bill.
3. Easier to obtain for those with equity, no recent mortgage defaults, and stable income.

How Does It Work?

PACE loans appear as a separate line item on your property tax bill. Payments align with your property tax schedule, whether you pay annually, semi-annually, or through an impound account. Projects completed after June may not require a payment until November of the following year, offering a grace period of up to 18 months.

What Can You Finance with PACE?

PACE financing can cover projects like:

1. Roof replacement and upgrades to energy-efficient roofing.
2. Solar installations and solar backup systems.
3. Removal and reinstallation of solar panels for roofing projects.
4. High-efficiency HVAC systems, windows, doors, and landscaping.

Terms, Fees, and Interest

PACE loans offer flexible terms of 5–30 years, depending on the lifespan of the project (e.g., solar and roofing can qualify for 30 years). There are origination fees and fixed competitive interest rates.

Pros of PACE Financing

1. No upfront costs for projects.
2. Flexible repayment terms.
3. Up to $250,000 in 100% financing (based on equity).
4. Potential to transfer to new homeowners.
5. Tax benefits and increased property value with upgrades like solar installations or new roofs.

Cons of PACE Financing

1. Available only in select communities.
2. Adds a lien to your property taxes.
3. Slightly higher interest rates compared to HELOCs.
4. Requires understanding the tax-based repayment system.

Home Pro Roofing and Solar: Your Partner for PACE Projects

Home Pro Roofing and Solar proudly serves the Sunnyvale, Mountain View, Los Altos Hills, Cupertino, San Jose, San Carlos, Belmont, and Redwood City areas. We specialize in roofing, solar installation, and solar panel removal and reinstallation, making us your one-stop shop for energy-efficient home improvements.

PACE Financing is ideal for homeowners looking to invest in long-term savings with upgraded roofs, solar systems, or energy-efficient additions. Contact us to learn how PACE can work for your next project!