Thought Leadership in Sustainability
Imagine being able to refit a home or business with new central air conditioning, efficient water heaters and hurricane-resistant windows. The utility bill would certainly go down, but how would you pay for the front-end cost?
Proposed Florida legislation would allow a new method for funding energy-efficient improvements using a Property Assessed Clean Energy (PACE) bond. These bonds would be issued by municipalities that opt into the program, allowing property owners to pay for improvements through an assessment on their tax bill. If you move, the assessment stays with the property.
State Rep. Adam Hasner, R-Delray Beach, notes: “By helping consumers finance the upfront costs for energy improvements, we’ll be taking away the biggest burden for homeowners who want to make their homes more energy efficient and save money.”
The PACE bond tool finances structural improvements like windows or central AC. The bill envisions repayment over 20 years via an annual assessment. A nonprofit group estimates the U.S. market for these bonds could eventually exceed $500 billion.