Montgomery County PACE Financing
Congratulations, Montgomery County property owners! You live in a city that supports property tax solar financing.
How does Montgomery County’s municipal solar financing program work?
Under the newly-adopted Home Energy Loan Program (HELP), a homeowner voluntarily obtains a home energy audit from a certified auditor to identify what cost effective, energy efficient, and renewable energy measures could be taken. The homeowner then takes the results of the audit to the County, which would provide a zero interest loan to make the improvements. The loan would be added to the property tax and repaid over 15 years, and it would run with the property—not with the homeowner that took out the loan. In other words, if you move, the next tenant continues to pay for the loan through property taxes.
That sounds great! How is Montgomery County able to do this?
There will be at least $1.4 million in stimulus funds. Details for the HELP are still being worked out, and the County is looking to increase the amount available with other funds. The HELP will also be made possible by the Maryland Energy Administration’s (MEA) Solar Energy Grant Program, which will provide grants as follows:
“Solar Photovoltaic: For photovoltaic property the lesser of $1.25 per
watt of installed electricity generating capacity for the first 4,000
watts; $1.00 per watt of installed electricity generating capacity for
the 4,001-8,000 watts; and, $0.50 per watt of installed electricity
generating capacity for the 8,000-10,000 watts with the maximum grant of $10,000.”
Additionally, HELP is a revolving fund. Once the initial capitalization costs are covered, the securitization of the loans through the property tax add-on virtually guarantees that the loans will be repaid, and available for new homeowners.
Is the solar financing program available now?
The program will be available starting October 22, 2009. For more information, please view Montgomery Council’s press release, or read about the MEA’s Solar Energy Grant Program.