PACE is a program designed to allow property owners (residential and commercial) to install electric and thermal solar systems and make energy efficiency improvements to their buildings and pay for the cost over 20
years through an annual special tax or assessment on their property tax bills. The program is pioneered by the City of Berkeley (where it is known as Berkeley FIRST) with a number of other cities and counties following
closely behind.
No property owner pays additional taxes or fees unless they had work done on their property as part of the program. Those who do have work done on their property would pay only for the cost of their project
(including interest) and fees to administer the program. Individual property owners would contract directly with qualified private solar installers and contractors for energy efficiency and solar projects. The City would provide
the upfront funding for the project through proceeds derived from the creation of a bond, which is repaid from special taxes or assessment on participating property owners’ tax bills.
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