The world’s first PV-powered solar water heating solution – Next Generation Energy’s Sun Bandit – is now eligible for financing with the nation’s largest and fastest-growing PACE providers. Sun Bandit’s eligibility for PACE financing brings a lower cost of entry to the solar PV marketplace, putting Sun Bandit’s solar hybrid water heating solution within reach of just about any property owner.
PACE (Property Assessed Clean Energy) financing allows equity-bearing residential and commercial property owners to finance 100 percent of over 60 categories of renewable energy, energy efficiency and water conservation improvements with no money down, no FICO score requirements nor encumbrance of personal or business credit. Financing is repaid over periods of up to 25-years via voluntary assessments on owners’ property tax bills.
Lending credibility to Sun Bandit’s case for PACE eligibility is a plethora of key solar milestones, among them UL listing in both the US and Canada, Energy Star rating and ICC-SRCC OG-100 and OG-300 certifications that warranted an entirely new category of solar water heating and energy storage.
As of today, up to 13 Sun Bandit OG-300-certified models with electric, natural gas and propane back-up are eligible for PACE financing.
Among the PACE providers that will finance Sun Bandit projects is Renovate America, which administers the HERO Program. HERO is the nation’s largest residential PACE program and has helped finance energy and efficiency improvements across more than 87,000 homes since it launched five years ago.
“HERO empowers Americans to transform their homes by giving more people access to energy-efficient, renewable energy and water-saving technologies,” said Renovate America spokesman Greg Frost. “By financing only clean energy and energy-efficient solutions, HERO creates a golden opportunity for homeowners to save on utility bills, enhance their sense of comfort at home, and — in many cases — improve property values.”
On the whole, industry trade group PACENation says residential PACE financing is responsible for over 130,000 home energy and efficiency improvements valued at more than $3.3 billion across the U.S., creating an estimated 33,000 jobs. The Wall Street Journal characterizes PACE as “most likely the fastest-growing type of financing in the U.S.”(1)
PACE financing doesn’t just benefit property owners. Thousands of approved residential and commercial contractors across America use PACE to close deals that help consumers realize their solar ideals. Some PACE providers – HERO, for example — help contractors overcome working-capital constraints by allowing for up-front advances of up to 30 percent of project improvement amounts.
Commercial PACE financing is also on the rise: A PACENation Q3 2016 Market Update notes 380% year-over-year-growth compared to Q3 2015. The 44 commercial (C-PACE) providers operating in 19 states have cumulatively financed over 988 projects valued at more than $332 million while creating over 4,000 jobs.(2)
In addition to financing the installation of Sun Bandit solar water heating solutions, many PACE providers cover the cost of related solar work such as roof repairs, electrical-box upgrades, installation of solar battery technology and even home EV charging stations. And like Sun Bandit systems, many solar and efficiency-based PACE improvements qualify for a 30% federal tax credit. State and local incentives may also apply.
“The innovators at Next Generation Energy and PACE providers across America are aligned in our commitment to make solar more accessible to property owners throughout the U.S.,” said Bill Beedon, Marketing and Business Development Director for Sun Bandit parent Next Generation Energy. “With key solar milestones in our wake, we’re delighted to leverage the swift, straightforward nature of PACE financing to drive new business for Sun Bandit partners and distributors in the new year.”
According to PACENation, PACE-enabling legislation is active in 33 states and Washington, D.C. PACE programs are currently operating in 19 states and the District of Columbia. Residential PACE is currently offered in California, Missouri and Florida.
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(1) Kirsten Grind, The Wall Street Journal, Jan. 10, 2017
(2) PACENation.us/pace-market-data/ (Q3 2016)
