Virginia PACE financing
| Program Type | Property Assessment Based Financing |
|---|---|
| Technologies | Photovoltaics, Landfill Gas, other renewables |
| Amount | Locally determined |
| Required Documentation | Locally determined |
| Official Web Site | http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+15.2-958.3 |
Virginia’s PACE financing statute allows property owners to get a loan from the local government to finance photovoltaic installations and energy improvements. The government places an assessment or lien on the property equal to the amount borrowed, and the property owner pays it back over time. In some states, the local government can finance the program by issuing bonds; it is not clear whether that is the case in Virginia. The program was enacted in 2009, and clarification to the rule was added in July 2010. As of August 2010, no local governments or municipalities had developed a PACE financing program.
Under Virginia’s rules, local governments that choose to offer PACE financing can establish an ordinance to do so. However, they must first hold a public hearing allowing for feedback on the draft ordinance or plan. The local government must specify which clean-energy improvements are allowed, establish funding sources, and determine the terms of the loans, including interest rates and repayment terms.
The local government must determine how it will collect the loan repayment. Some choices include property tax assessments, extra charges on water or sewer bills, or other billing methods.
Private lenders may also participate in the PACE program as well. And the local government may choose to bundle the loans and allow private lenders to purchase them without impacting the lien.
