New York PACE Financing
Congratulations, New York property owners! You live in a state that supports property tax solar financing.That sounds great! How is New York able to do this?
In November 2009, New York lawmakers unanimously passed AB 40004A, authorizing municipal loan programs for renewable and energy efficiency improvements on homes and businesses. These programs allow homeowners to go solar and make energy efficiency improvements to their home without any upfront cost.
The amount borrowed as part of the program can be repaid through an increased property tax assessment over a period of years. The loans will carry a fixed interest rate and stay with the house- so if you move, the next tenant continues to pay for the loan through property taxes. That means you don’t have to worry about paying for panels on a house that you don’t live in anymore.
Is solar financing available now?
In 2008, before the current PACE legislation, the town of Babylon, NY launched the Long Island Green Homes Program. This program is a bit different, because residents pay for the optional energy efficiency improvements through a fee added to their garbage collection service, instead of their property taxes. Now, with New York’s AB 40004A, expect to see more city programs appearing around the state!