Whether you’re mildly interested in investing in solar or you’re ready to go all the way, there’s one key area that companies and homeowners alike stumble over—the price.
It’s not so much that solar is a particularly expensive investment (especially once you consider how much you save over the years after the system is installed); it’s just difficult to justify a sizable out-of-pocket cost when you have other areas that require more attention and a larger chunk of your budget. But that’s where so many potential solar investors make a mistake—once the upfront cost is paid, the ROI is quick and predictable. At O3 Energy, we feel that it’s essential that our team not only provides quality solar installation, repair, and support, but assistance with the financing aspect as well. In this blog, we’ll talk about PACE solar financing programs available for commercial and residential properties and how they can make your solar project more affordable.
First things first—what is PACE? PACE stands for property assessed clean energy, a model for financing solar projects that makes it easier for commercial (C-PACE) and residential (R-PACE) property owners to install solar structures. The model allows property owners to finance the upfront cost of new energy systems or other certain improvements on their property before paying back the costs over time through voluntary assessments.
PACE assessments are tied to the property, as opposed to an individual, and are typically based on an existing structure within a conventional assessment district. Typical projects funded within conventional assessment districts include municipal structures like streetlights, utility lines, and sewer systems.
Now that this method of financial modeling extends to energy efficiency projects (like solar), PACE can help property owners install solar structures without having to bear the burden of a heavy upfront cost. PACE solar loans are an easy way to improve the efficiency of your space while still maintaining the financial flexibility you need moving forward.
Property owners are constantly weighing the pros and cons of various investments, always assessing whether they stand to improve the value of their property (or decrease ongoing costs). The hard part is finding any sense of certainty; fortunately for our clients, O3 Energy has the experience required to make successful solar installation a sure thing. Benefits of PACE financing include:
- Secure financing for scalable solar projects over an extended period of time, helping projects move to cash flow positive quickly and predictably
- Minimal upfront costs and flexible options for repayment periods, allowing you to retain your financial freedom while still being able to make a sound investment for your energy source
- Low-interest rates included due to the high security of loan repayments attached to property tax bills (an essential reason why these loans are tied to properties, not individuals)
- Some property owners are able to deduct payments from their income taxes
- Fosters the growth of affordable, highly efficient energy solutions
That’s where O3 Energy comes in. We’re not just here to install a solution and then hit the road; our goal is to help you navigate the entire solar installation process from start to finish. With quality support every step of the way, we can help with everything from securing financing all the way through to ongoing maintenance and assessments of your solar system. We maintain an extensive network with key players in the industry and various municipalities and leverage our partnerships so that our customers always find a solution that makes sense for their unique situation.
Don’t hesitate—if you want to improve efficiency for your building without putting a massive dent in your budget, solar structures are the answer. Reach out to O3 Energy today to get started on your project.