A consortium of 14 northern Westchester towns, led by Bedford, New York In their grant applications, the jurisdictions proposed using an innovative financing model to pay for the projects, called Property Assessed Clean Energy (PACE). PACE programs provide a funding mechanism for municipalities to help property owners cover the up-front costs of energy efficiency improvements or renewable energy projects. Owners are then able to pay off the projects through an incremental charge on their property taxes, over an extended period of time of up to 20 years.

This is supposed to make the projects affordable by allowing property owners to enjoy substantial savings on their energy bills as they make payments – often with the savings immediately exceeding the costs. The programs are entirely voluntary. There is no requirement for municipalities to create PACE programs, or for homeowners to participate in them. If the property is sold, the financing can be transferred to the next property owner, along with the ongoing energy savings.

Current New York law, however, only authorizes use of the PACE program with federal funds. According to Vote Solar, the state should expand this economic opportunity to more New Yorkers by amending the existing legislation to allow cities, counties and towns throughout the state to leverage federally supported programs with more funds, and for others to implement such programs with other funding sources, including private funding sources.

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