New York PACE Financing
How does New York’s financing program work?
New York allows counties, towns, and cities to set up loans for renewable energy and energy efficiency improvements to be paid back through property tax payments over a period of 15 to 20 years. The loans 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.
That sounds great! How is New York able to do this?
Thanks to New York’s AB 40004A law, counties and municipalities can set up their own loan programs. Approved by the New York State legislature on November 16th 2009, this law expands the financing options authorized by the state under the previously-enacted New York AB 8862. The earlier bill permitted towns to include the operation of a home energy efficiency program within their refuse and garbage districts. AB 40004A is much broader, and allows counties, towns cities and villages to create loan funds for renewable energy systems or energy efficiency retrofits, repaid through property taxes.
Even more exciting, this law will enable New York municipalities to take advantage of federal funding. The U.S. Department of Energy announced in October that it would offer $454 million to support PACE pilot programs around the country through the Recovery Act, and now New York communities can join municipalities in other states applying to receive a portion of these funds.
Is the solar financing program available now?
So far, Babylon, Binghamton and Bedford have already established clean energy financing programs through AB 8862, and others are sure to follow with PACE programs. Keep your eye out for more locations popping up in the near future!