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Financing
In the USA, Innovation Home Services Corporation offers the Property Assessed Clean Energy (PACE) model - an innovative, low-cost financing solution that helps homeowners and business owners make improvements that dramatically reduce their energy and water use - and repay on their property taxes. PACE was endorsed by President Obama as a national clean energy priority and named by Scientific American Magazine as one of the top 20 ideas that can change the world.
Innovation Home Services Corporation is certified with Ygrene Financing, which covers all of the installed costs associated with your project, and allows you to finance up to 10% of your home's value. There is no deposit and no down payment required. Up to 20-year terms are available, meaning lower payments for you. The interest rate may be tax deductible, which lowers your effective interest rate and monthly payments even more. You repay the cost of installations on your property tax bill. In most cases, payments can transfer upon the sale of your home, so the payments stay with your home, not with you.
Improvements to your home increase the value of your home! According to the Appraisal Institute, "energy-efficient homes have higher values and sell for more than their non-energy efficient neighbors." Aside from adding to the aesthetic value of your home, your energy-efficient improvements increase your home's comfort and cost savings, and decrease negative environmental impact. What's not to love?
PACE programs allow a property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment. The unique characteristic of PACE assessments is that the assessment is attached to the property rather than an individual.
PACE financing for clean energy projects is generally based on an existing structure known as a "land-secured financing district," often referred to as an assessment district, a local improvement district, or other similar phrases. In a conventional assessment district, the local government issues bonds to fund projects with a public purpose such as streetlights, sewer systems, or underground utility lines.
The recent extension of this financing model to energy efficiency and renewable energy allows a property owner to implement improvements without a large up-front cash payment. Property owners that voluntarily choose to participate in a PACE program repay their improvement costs over a set time period—typically 10 to 20 years—through property assessments, which are secured by the property itself and paid as an addition to the owners' property tax bills. Nonpayment generally results in the same set of repercussions as the failure to pay any other portion of a property tax bill.
A PACE assessment is a debt of property, meaning the debt is tied to the property as opposed to the property owner(s). In turn, the repayment obligation may transfer with property ownership if the buyer agrees to assume the PACE obligation and the new first mortgage holder allows the PACE obligation to remain on the property. This can address a key disincentive to investing in energy improvements because many property owners are hesitant to make property improvements if they think they may not stay in the property long enough for the resulting savings to cover the upfront costs.
PACE ADVANTAGES:
Allows for secure financing of comprehensive projects over a longer term, making more projects cash flow positive.
Spreads repayment over many years, seldom requires an upfront payment, and removes the requirement that the debt be paid at sale or refinance.
Can lead to low-interest rates because of the high security of loan repayments attached to the property tax bill.
Helps some property owners deduct payments from their income tax liability.
Allows municipalities to encourage energy efficiency and renewable energy without putting general funds at risk.
Taps into large sources of private capital.
PACE DISADVANTAGES:
Available only to property owners.
Cannot finance portable items (screw-in light bulbs, standard refrigerators, etc.).
Can require dedicated local government staff time.
May require high legal and administrative setup obligations.
Not appropriate for investments below $2,500.
Potential resistance by lenders/mortgage-holders whose claims to the property may be subordinated to the unpaid assessment amount should the property go into foreclosure
How Can Your Home or Business Benefit from PACE Financing?
In most cases, the tax credits and energy savings completely pay for your home upgrades
PACE Program Fees
PACE Financing can cover 100% of the costs
associated with your next big home improvement project
>$0 DOWN
>No payments up to 12 Months
>40% Savings on Monthly on Electricity Bill
>Payments made through Property Tax
>Terms up to 25 years
Lower Your Energy Bills
Utility companies continue to increase their rates. Lower your energy usage and lower your energy bills with high efficient heating, ventilation & air conditioning units . Not only is it better for the environment, it’s better for your wallet too.
Home & Business Energy Conservation
When your home and business consumes less energy, it frees up money for other things like vacations, your children’s education, retirement, or more money to put into your business. That’s why Innovation Home Services Corp. is proud to deliver the Home and Business Energy Conservation Program. Helping you save money is simply the right thing to do. This program makes it easy and affordable for you to improve the energy efficiency of your home, and lower your energy bills.
Energy Assessment
You must have your home or business prequalified for Energy Rebates.
Contact us to book your home energy audit today
1.888.788.HVAC