What Is PACE Financing?
Renovating or upgrading your home can be a smart investment, especially as home prices continue to rise. Instead of moving, many homeowners are choosing to improve the home they already have.
Still, home upgrades can be expensive. If you need a new AC system, roof, impact windows, storm protection, or energy-efficiency improvements, you may be wondering how to pay for the project.
One option available to some Florida homeowners is PACE financing.
What Is PACE Financing?
PACE stands for Property Assessed Clean Energy. It is a financing option that helps property owners pay for certain home improvements, especially projects related to energy efficiency, water conservation, storm protection, and home safety.
PACE financing is approved through state and local programs. Instead of paying the full cost of a qualifying project upfront, the property owner repays the cost through a special assessment added to their property tax bill.
In Florida, PACE programs are available in many counties and cities, including areas such as Miami-Dade, Broward, and Palm Beach County.
How Does PACE Work?
PACE is designed to make eligible home improvement projects more accessible.
The process usually works like this:
You review the program guidelines.
You apply for approval through a PACE program.
Once approved, you choose a participating contractor.
The qualifying project is completed.
You repay the cost through your property tax assessment.
This can make it easier for homeowners to complete needed upgrades without paying the full project cost upfront.
Is PACE a Loan?
PACE is not a traditional loan where you receive cash directly. Instead, it is a financing program tied to your property.
The cost of the approved improvement is repaid through your property taxes as a special assessment. This means the repayment obligation is connected to the property, not just the person who applied.
Because the payment is collected through your property tax bill, it is important to understand the terms before moving forward. Just like other property tax obligations, missed payments can create serious issues.
Before using PACE financing, homeowners should carefully review the repayment amount, timeline, and how it may affect their property taxes or future home sale.
Who May Qualify for PACE?
Eligibility can vary depending on the program, location, and type of project. In general, PACE programs may review factors such as:
The amount of equity in the property
Ability to repay the assessment
Mortgage payment history
Property tax payment history
Whether the project qualifies under the program
If you are considering PACE financing, the best first step is to contact the program directly or speak with an approved contractor who can help explain the process.
What Projects May Qualify for PACE?
PACE financing may be used for many types of home improvement projects. These often include upgrades related to energy efficiency, storm protection, water conservation, and structural improvements.
Common qualifying projects may include:
Solar panels and solar water heating
Energy-efficient windows and doors
Roofing upgrades or replacement
Impact windows and storm shutters
Wind-resistant roofing
Backup generators
Heating and cooling upgrades
Heat pumps
Duct cleaning, duct repair, or duct replacement
For HVAC projects, this may include certain heating and air conditioning upgrades that improve efficiency or home comfort.
Eligibility depends on the specific project and program requirements, so homeowners should confirm before starting the work.
PACE Programs in Florida
There are several PACE program providers available in Florida. Each program may have different terms, approval requirements, contractor networks, and repayment options.
Two common PACE financing providers homeowners may come across are:
Ygrene
FortiFi
Before choosing any financing option, it is important to compare the terms, repayment structure, fees, and long-term cost.
Ygrene
Ygrene is one PACE financing provider used for residential and commercial property improvements. It may help homeowners finance qualifying projects such as energy-efficiency upgrades, hurricane protection, water conservation improvements, and other eligible home upgrades.
Homeowners interested in Ygrene should review the program details carefully and confirm whether their project, property, and contractor qualify.
FortiFi
FortiFi is another PACE financing provider that may be available for eligible home improvement projects. Depending on the program and property, FortiFi may offer financing options for energy-efficiency upgrades, HVAC improvements, storm protection, roofing, and other qualifying projects.
As with any financing program, homeowners should review payment terms, total cost, fees, and eligibility requirements before deciding if it is the right fit.
Is PACE Financing Right for You?
PACE financing can be helpful for homeowners who need to make important upgrades but do not want to pay the full cost upfront.
However, it is still a serious financial decision. Because repayment is tied to your property taxes, you should understand how the assessment works, how much it will add to your tax bill, and how it may affect your home if you decide to sell or refinance.
Before moving forward, ask questions such as:
Does my project qualify?
What will my total repayment amount be?
How long is the repayment term?
Will this affect my property taxes?
Are there other financing options available?
What happens if I sell my home?
Need Help With an HVAC Upgrade?
If you are considering a new AC system, heat pump, ductwork improvement, or another HVAC upgrade, Freezing Mechanical can help you review your options.
Our team serves homeowners throughout Miami-Dade and Broward County with honest recommendations, quality installation, and dependable service.
Whether you are exploring PACE financing, traditional financing, or paying directly for your project, we can help you choose the right HVAC solution for your home.
Schedule an appointment today to learn more about your options.