Incentive Type: PACE Financing
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Heat Pumps, * Pending rules by Efficiency Maine Trust, Geothermal Direct-Use
Applicable Sectors: Commercial, Industrial, Residential, Property Owners
Program Start Date: 04/01/2010
Summary: Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Maine has authorized certain local governments to establish such programs, as described below. (Not all local governments in Maine will choose to offer PACE financing; contact your local government to find out if it has or intends to establish a PACE financing program.)
Maine signed PACE legislation into law in April 2010 authorizing municipalities to establish a loan program to provide financing for clean energy improvements to property owners via local ordinance. The legislation authorizes municipalities to enter into PACE agreements with property owners, provide financing, and collect PACE assessments to repay the loans. Municipalities will be able to use federal grants or other "funds available for this purpose" to establish PACE programs. The legislation stipulates that PACE assessments will be considered subordinate liens, secondary to mortgages.
Efficiency Maine Trust* has been directed to promulgate rules for Maine's PACE programs. Municipalities will be required to comply with the law and rules accordingly if they choose to pass a PACE ordinance and develop a PACE program for property owners. The Efficiency Maine Trust will determine which efficiency improvements and renewable energy installations will be eligible for PACE financing under municipal PACE programs. In addition, Efficiency Maine Trust rules will include standards for underwriting requirements, and "truth in lending" provisions, among others.
In April 2010, state of Maine was selected to receive $30 million through the Retrofit Ramp-up** program to help support implementation of its PACE programs statewide.