Hi David,

Thank you for emailing us, you pose a very interesting question.

Property Assessed Clean Energy (aka "PACE") is a voluntary property tax assessment to aid in financing alternative energy projects. The most common type of alternative energy source for residential properties is solar.

Unfortunately, implementation of solar energy technology hasn’t quite gotten to a point of quick payback, yet. There is no guarantee that the amount a person saves on his or her energy bill will equate to the cost of the property tax assessment within the time frame of each assessment period.

So, PACE may be helpful for those who have determined that they want to implement alternative energy sources in their projects and would do it regardless of payback, however, I don’t see it as a great incentive for those who wouldn’t otherwise attempt to implement alternative energy, as it does nothing to reduce the overall cost.

That aside, to answer your question directly, I think it is a matter of advertising and PR as to whether it will become accepted throughout the U.S. If those supporting PACE can get the financial support needed to make the issue known to the general populace and the political support to promote it, it could very well become accepted throughout the U.S. Though once in place, I predict it will typically be utilized by those who would implement alternative energy on their projects regardless of the existence of PACE.

Thank you for your question.

Related Advice:

• Commercial Solar Financing: How Do I Finance my Renewable Energy Project?



• Passive Solar Home: What Green Building Tax Credits and/or Rebates are Available?