28 Stories in 28 Days: Day 3

Energy contractors and solar installers face plenty of challenges, and providing their clients with suitable financing is one of the most daunting. It's easy to work days and sometimes weeks on a proposal, only to lose it to a larger competitor who can offer a complete package, because they have access to larger pools of investment dollars. But whether it's a PPA, a lease, or an ESCO service agreement, it comes with a hefty price — typically 15-20% more than financing the same project conventionally.

PACE, by contrast, makes financing potentially available to all contractors, regardless of size, providing they're qualified to do the job.

This financing does not depend on their creditworthiness, or the owner's. It depends only on the merits of the project, and on the underlying asset value and cashflow of the property. Projects are carefully reviewed in order to ensure that they meet the standards of eligibility and cost-effectiveness. Property owners must be current on their taxes, and if they have a mortgage must obtain the mortgage holder's consent to placing an assessment lien ahead of the mortgage. This will normally be approved if the improvement increases the value of the lender's collateral and improves the borrower's cashflow.

For larger contractors, who already offer other forms of financing, PACE can provide a "credit enhancement" to offset any deficiencies in the owner's credit history. PACE thus allows more property owners to complete clean energy upgrades and retrofits by providing the financing, and the security, that they and the investors need.

As a transparent, open-platform 501(c)(3) nonprofit, New Jersey PACE gives support and assistance to all contractors to inform their clients about the financing approach and its benefits. To cover both sides, we also provide information to property owners so they’re educated in understanding how PACE works.

Energy services contractors can go in to meetings confident that their clients have the necessary resources to complete capital-intensive projects that will produce more benefits in the long run.

Supporting NJPACE will help lead the way for more clean energy improvements in New Jersey. Contractors can sign up through NewJerseyPACE.org and join the Alliance for NJPACE, an interactive site for all stakeholders, including property owners, energy services providers, other professionals and associations, municipal and other officials.

With more projects completed, property owners gain reduced energy costs, contractors gain more profits, community members gain cleaner air and better buildings and municipalities gain more businesses. Everyone benefits from a thriving New Jersey PACE. If you'd like to help make this happen, please support our crowdfunding campaign with a donation.