PACE—which stands for Property Assessed Clean Energy—operates in cooperation with a local government, typically a city or county, that agrees to finance solar power systems through the sale of municipal bonds. Investors purchase the bonds, and the proceeds are used to pay for the installation of the solar power system. The government entity imposes a lien on the property to be discharged after the owner has paid back the system cost over time as an assessment on their annual property tax bills. If the client chooses to sell the property, the obligation "runs with the land" and is assumed by the new owner (who, of course, also derives the benefit from the solar power system). Under PACE, there is no personal obligation on behalf of the solar client, so neither corporate nor personal credit is at issue.
Commercial PACE programs are presently available in most of Los Angeles County, but not (presently) in Orange County.
***Call Voltage River for details on the Commercial HERO program
Much has been written regarding these 2 ways of acquiring a solar electric system.. for that matter any purchase which has tax credits and other government buy-down incentives. Straight up a purchase is the least expensive way to buy a solar system. But that is not the whole story.. Available cash on hand your ability to absorb the tax credits and cost comfort zone are all contributing factors. We offer both and depending on your particular set of circumstances one may be far better than the other.. The Chart below provides a clear picture of the pros and cons of each option. When looking at the chart keep these things in mind.
***Call Voltage River to help you make the right decision about buying your Solar Electric System (714) 255-1316
|System ownership||You own the system||The leasing company owns the system installed on your roof. At the end of the lease term you may have the option to renew your lease, purchase the system, or remove the system|
|Utility Rebate||You can receive the incentive payment yourself or you can assign it to your contractor to buy down the system cost. Not applicable to production based incentives.||Leasing companies require that the customer sign over the incentive payment to them. Not applicable to production-based incentives.|
|Federal Tax Credit||You are eligible for the tax credit benefits as the system owner.||The leasing company retains all of the tax credit benefits as the system owner.|
|Who receives the tax benefit of the depreciation?||Property Owner||Leasing Company|
|Monthly Electrical Savings||Your savings will be reflected in your utility bills. However, if your finance your system, these savings will be offset by the cost of the loan payment until the loan is paid at which time you realize all of the energy savings.||You saving will be reflected in your utility bills. However, the cost savings on your electric bill will be offset by your monthly lease payment, as well as any additional costs realized at the end of the lease term|
|Selling your house or business||The system is considered an upgrade and increase your selling price or improve marketability||Under a lease, you must either buy-out the remaining balance of the lease or transfer the lease to the individual purchasing your home or business. Transferring the lease is contingent on the new buyer's credit score and their willingness to accept the transfer. Leasing companies may also require that you get their written consent before you sell your home or business.|
|Payback Period||Your monthly electric savings will payback the cost of the system in 3-7 years depending on utility / size of system and down payment||Most Lease agreements are 20 years terms. You will be required to pay for the solar energy equipment at the fair market value of the equipment which be assigned at the end of the lease term. The value of the equipment must be greater than $0(by law because you assign the tax benefits to the lessor).|