Property Assessed Clean Energy (PACE) Financing/Special Energy Improvement Districts (SID)

Incentive type: 
Energy Efficiency
Technologies: 

Solar Water Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Anaerobic Digestion, Geothermal Direct-Use, Energy Efficiency Improvements

Date: 

Date Enacted/Effective: 6/17/2010

Sectors: 
Tax Exempt
Contact Information: 

Not all local governments in Ohio offer PACE financing.  Contact your local government to find out if it has established a PACE financing program.

NOTE:  As of July 2010, the Federal Housing Financing Agency (FHFA) issued a statement (click here to view statement from FHFA) concerning the senior lien status associated with most PACE programs.  As a result of the statement, most local residential PACE programs have been suspended. 

Property Assessed Clean Energy (PACE) laws allow property owners to borrow money through governmental loans or bonds to pay for energy improvements to their properties. The amount borrowed is typically repaid via a special assessment on the property tax bill over a period of up to 30 years.
  
PACE authority is contained in Ohio House Bill 1, enacted July 17, 2009, and Ohio Senate Bill 232, enacted on June 4, 2010.  Ohio House Bill 1 allows local governments to assist property owners in financing solar energy improvements to their properties by requesting a special assessment from the local government.  Participating local governments must pass legislation to establish a "special improvement district" or SID to facilitate the financing.  Ohio Senate Bill 232 expanded the PACE legislation to include wind, geothermal, biomass, gasification, and energy efficiency technologies.