PACE financing can mean great things for homeowners. Residential Property Assessed Clean Energy (PACE) programs were created to help homeowners finance important energy and water-efficient upgrades. PACE financing makes it possible for you to make upgrades to your home with no up front costs.
Here are four things you may not know about PACE financing:
- With PACE, up to 100 percent of your project can be financed
While adding energy saving upgrades in your home can provide numerous benefits, certain projects can be costly. PACE makes it possible for you to purchase those upgrades immediately and pay them back over time through an additional line item on your property tax bill. Get value for your purchase, without having to save mountains of cash for an upfront down payment.
- Certain projects offer potential energy savings
Many energy and water-efficient home improvements can help you cut down on your utility bills. From landscaping features that can decrease your water usage, to insulation upgrades that can lower heating and cooling costs, there are plenty of ways to save. PACE financing can be used on several different types of home efficiency upgrades—these options vary depending on what state you’re in.
- PACE covers projects that can help protect your home
If you live in an area that experiences severe weather, you may be able to purchase important upgrades that help protect your home. For example, some PACE providers cover wind-resistant improvements in Florida, where homeowners often face tropical storms and hurricanes. If you live in an area where brush fires are prevalent, PACE can help you finance energy-efficient roofing, double-paned windows and other home upgrades that may also be fire-resistant.
- There may be tax advantages
If you do rooftop solar, you may be eligible for a federal tax credit of 30% of the project cost. You may also possibly be able to deduct the interest you pay on your PACE financing, if you itemize on your federal income tax filings. Renovate America does not provide tax advice and on both, you should consult a tax advisor to find out what may be possible for you.
If you’ve been considering a home remodel or renovation project, PACE could be the solution to your project planning woes. When you’re interested in learning more about PACE, check out Renovate America’s PACE product, HERO.