I find myself writing in circles about solar scams. There are “free Solar Contra Costa County” and “Free Solar” ads everywhere. Today I found myself finding yet more solar scams. How many of you have seen the sponsored ad that talks about “The Self-Employed Energy Savings Program?”. This sponsored Facebook ad is another example of “clickbait”. This is where self-employed homeowners ‘click’ – thinking they are going to get access to specialized financing. Only to find out that their personal information has been transferred to a solar company. Then aggressively begin selling a solar PV system. Here is the secret. There is no ‘specialized’ financing for homeowners who are self-employed. But, there are options for many self-employed homeowners. Let me introduce to you the Property Assessed Clean Energy Program (PACE) financing.
What is PACE (Property Assessed Clean Energy Program)?
PACE stands for Property Assessed Clean Energy Program. This program is a strategy to finance energy efficiency upgrades, such as solar panel installation, on private property. Although PACE is more commonly known for residential property, the C-PACE program also is available for commercial properties.
PACE financing allows a property owner to finance the up-front costs of energy improvements on a property and then pay the costs back over time through a voluntary assessment. This is unique since:
- assessment is attached to the property and not to the individual
- payments are typically extended over 10-20 years through the property assessment
- the loan is secured by the property and paid alongside any property taxes due
Why is PACE a Solution for Self-Employed Solar Customers
Any self-employed business owner knows financing can be tricky. PACE is a great solution because your eligibility is based on the equity in your home – NOT on a pay-stub or a specific amount of income or debt-to-income ratio. Plus, there are no up-front costs required, interest rates are typically quite low, and most homeowners can qualify – assuming they have equity in their home and their home is in good financial standing. This creates a great opportunity for self-employed homeowners to finance solar panels on their home, which otherwise, might be out of reach or unrealistic to pay for out-of-pocket.
PACE is NOT A Secret
PACE is not a program designed for self-employed homeowners. The ability of someone to qualify for PACE financing is based on the equity of their home and not on their income or credit. Many people benefit from the qualification standards of PACE, not just self-employed homeowners. Many self-employed homeowners do not qualify because they do not have equity in their homes.
If you are self-employed and have not found the ideal financial solution to install residential solar panels, please reach out to us. One of our Energy Advisers will work with you to determine what sort of system is ideal for your home and energy usage and then find the financial solution that aligns with your goals. Call our showroom and schedule your free solar consultation today.