What is the difference between PAYS & PACE?

A:
Key similarities between PACE & PAYS
  • 100% of upfront costs are covered
  • Does not require personal credit
  • Results in savings day one
  • Can be used for commercial & public buildings
Key difference between PACE & PAYS
  • PACE assessed on taxes (paid twice a year in large chunks)
  • PAYS assessed on utility bill (paid monthly, correlates logically with energy savings)
  • PACE requires property ownership to participate
  • PAYS does not require property ownership to participate, however, it does requires property ownership to implement/sign-off on *on-site improvements* 
  • PACE-eligible improvements are based on the value of the property
  • PAYS-eligible improvements are based on the internal payback of that specific improvement
  • PACE is effectively a form of debt, with a lien attached to the property
  • PAYS is a tariff rate that does not equate with a lien property or personal customer debt
  • PACE historically cannot be used for residential because of FHA limitations - "most residential financing programs have been shelved for now while the Federal Housing Finance Agency (FHFA) issues rules related to lien seniority for mortgaged homes"
  • PAYS can be used for residential properties
  • All PACE projects are permanently affixed to the property 
  • Some PAYS projects are permanently affixed to the property, but others like Community Solar Garden subscriptions are tied to the customer
  • In some states, PACE eligible improvements include: water conservation & natural disaster resilience measures 
  • PAYS eligible improvements exclusively include energy related improvements

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