PACE Financing Cited as Strategy to Meet New York’s Ambitious Energy Efficiency Target
Broad coalition applauds recommendations for statewide Property Assessed Clean Energy (PACE) financing programs for homes and commercial buildings to meet Gov. Cuomo’s energy-climate goals
PLEASANTVILLE, N.Y., April 27 – Today, New York State announced its support for residential Property Assessed Clean Energy (PACE), recommendations to strengthen the State’s existing Energy Improvement Corporation (EIC) administered commercial PACE program, and support for a new, New York City Energy Efficiency Corporation (NYCEEC) administered C-PACE program. A broad coalition of energy and environmental groups and businesses today applauded the New York State Research and Development Authority (NYSERDA) and the New York Department of Public Service (DPS) for their support of these key policy tools that will help to meet New York Gov. Andrew Cuomo’s ambitious energy efficiency target for the state. In less than a decade, PACE, a free-market financing tool facilitated by a unique public-private partnership, has become one of the most successful drivers of energy-efficiency and renewable-energy improvements to homes and other buildings in U.S. history.
In a new white paper titled “New Efficiency: New York,” NYSERDA and DPS recommended that the state “promote statewide availability of Residential PACE financing with appropriate necessary consumer protections and regulation of PACE administrators in New York.” The white paper notes that “NYSERDA and EIC recently worked with the legislature to amend New York’s PACE enabling legislation to make the State’s C-PACE market more accessible to property owners, third-party capital providers, and clean energy developers, which should help the C-PACE market achieve scale more quickly.”
“The Cuomo administration has set the stage for New York to launch a residential PACE program, bring C- PACE to New York City, and strengthen its existing C-PACE program throughout the rest of New York, which is great news for all building owners, local contractors and manufacturers, and communities interested in reducing emissions and saving energy,” said PACENation Executive Director David Gabrielson. “PACE can play an important role in helping New York achieve its ambitious renewable and energy-efficiency targets. We fully support the creation of a residential PACE program with robust consumer protections, including ability to pay standards, that serves homeowners and strengthens local communities. We’re excited that commercial PACE will soon be available statewide.”
Based on a unique public-private partnership model, PACE financing empowers building owners to make energy and efficiency improvements and pay for them over time at a competitive, fixed interest rate through an additional, voluntary line item on their property taxes.
Residential PACE
Since its adoption a decade ago, the owners of over 200,000 homes in California, Florida and Missouri have used PACE financing to go solar, install efficient HVAC systems and insulation, replace inefficient windows and doors, and make other qualifying upgrades.
Because PACE spurs demand for local contractor services, it’s estimated that PACE has also created more than 40,000 good-paying local jobs in communities across the United States. PACE-financed improvements are also projected to save homeowners billions of dollars on their utility bills while reducing greenhouse-gas emissions by millions of tons. Importantly, because PACE financing relies on private capital, these economic and environmental benefits are achieved at no cost to local government budgets.
J.R. Tolbert, Vice President of State Policy for Advanced Energy Economy, a national business association, said, “PACE is a proven market-driven approach to financing investments in energy efficiency and renewable energy. This announcement confirms New York’s position as a leader in advanced energy while providing homeowners with greater control over their energy future. This is a win-win for the state and for consumers.”
Iain Campbell, Managing Director, Rocky Mountain Institute (RMI), said, “RMI welcomes NYSERDA’s recommendation to create a Residential PACE program in NY which will provide homeowners in the state an energy-efficiency, clean energy, and resiliency financing tool. We believe creating and enabling a Residential PACE program in the state with the requisite consumer protection best practices will be a win-win solution for all New Yorkers. Residential PACE will not only help bolster economic development in the state by creating local jobs but also help the state in achieving its climate goals using private capital. Homeowners will be the biggest beneficiaries of such a program and can have access to longer-term energy efficiency and clean energy financing as they look to retrofit their homes to be more energy efficient, comfortable, and resilient.”
Sean Garren, Senior Director for the Northeast at Vote Solar, said, “All New Yorkers benefit when more folks can invest in clean, local solar power – bringing clean air, tax and investment dollars and good jobs to our communities. Residential PACE will help more customers secure affordable financing to put solar on their home. We are grateful for Governor Cuomo’s leadership on promoting energy efficiency and for his administration’s citing of Residential PACE as a strategy to help homeowners make the right financial and environmental choice – investing in energy efficiency and solar.”
Curt Rich, President and CEO, North American Insulation Manufacturers Association, said, “PACE is a tremendous tool in helping homeowners to make cost-effective energy improvements to their homes which lowers utility bills and improves home comfort. The insulation industry looks forward to working with state and local government partners, efficiency stakeholders, and New York families to promote and realize the benefits of energy efficient homes through the use of PACE.”
Mukesh Sethi, General Manager of Panasonic Eco Solutions Solar and Storage Division, said “We believe that PACE can help local government spur the adoption of solar energy projects, supporting the creation of new local jobs and the growth of the local economy. We know that local contractors and homeowners in states with active residential PACE programs have benefitted greatly from such programs.”
JD Dillon, Vice President of Marketing and Pricing at Enphase Energy, said, “PACE represents an important opportunity for local governments to drive the adoption of home energy efficiency projects, create new jobs, and boost local economies. We thank the Cuomo administration for laying the groundwork to make this innovative public-private partnership available to New York.”
Ryan Herrin, PC Manager, CED Greentech, said, “I believe PACE is just another avenue to help invigorate and continue to increase solar installs in the state of New York. We have done a fantastic job of increasing renewable knowledge in this state and the announcement by NYSERDA and the Department of Public Service is the first step toward helping get it out to more residents of New York. CED Greentech is really excited for this to become a reality.”
Chris Carrick, Energy Program Manager, Central New York Regional Planning and Development Board, said,“Governor Cuomo has established nation-leading energy efficiency targets for New York, and we commend him for beginning the process to establish residential PACE in our state. PACE financing has been extremely successful in California, where tens of thousands of homeowners have used it to make improvements such as insulation and solar PV, and we look forward to working with our partners in local government and the business community to bring that opportunity to our region.”
Roy Guthrie, CEO of Renovate America, a leading PACE provider, said, “The time has never been better to put PACE to work for the people, businesses and communities of New York. This announcement comes amid mounting evidence that PACE is working for American homeowners and their local communities – working to expand access to technologies that can lower utility bills while enhancing comfort at home; working to create tens of thousands of good-paying local jobs; and working to help local governments meet their environmental and economic goals.”
Cisco DeVries, CEO of Renew Financial, a leading PACE provider, said, “PACE financing is based on a simple premise – that American homeowners should have the right to access long-term, affordable financing in order to make their homes more efficient, comfortable and secure. We applaud the recommendation to bring residential PACE to New York, and we look forward to working with state and local officials to implement a PACE program that creates local jobs, reduces emissions and benefits thousands of New York families.”
Rocco Fabiano, CEO of Ygrene, a leading PACE provider, said, “PACE represents one of the best examples of a public – private partnership, designed to promote choice, allow homeowners to upgrade their homes and generate local jobs. Through PACE, New York will meet a critical gap in the consumer-financing marketplace and help thousands of residents treat the idea of renewable energy as a lifestyle, not a luxury. We look forward to assisting New York create the best-in-class PACE program.”
Commercial PACE
New York’s EIC administered C-PACE program now serves over 40 municipalities throughout the state, with more enlisting. New York City, however, requires City legislation, which the Cuomo Administration supports. Nationwide, C-PACE financing is offered in 20 states and the District of Columbia, and well over 1,000 commercial, industrial, not-for-profit, multi-family housing and agricultural properties have benefited from PACE financing.
Mark Thielking, Chairman of the Energy Improvement Corporation, said, “PACE Financing provides an important tool to the building owners of New York State by financing the upfront cost of improvements that reduce fossil fuel energy usage and lower costs while improving New York’s communities. Energize NY is ready to help accelerate the adoption of clean energy improvements and achieve Governor Cuomo’s 2025 energy efficiency targets by facilitating PACE Financing within our member municipalities.”
About PACENation
PACENation is a national non-profit organization serving the interests and needs of over 400 member organizations that share a common goal of making PACE financing available to all building owners throughout the United States. PACENation is building a broader PACE network by providing information, resources, and advice to a growing universe of PACE market stakeholders. To learn more, visit http://www.PACENation.us.