Partially driven by securitization and strong investor appetite, property assessed clean energy (PACE) loans are forecasted to double over the next year and potentially become the fastest growing method of financing in the United States. However, as these loans have ballooned they have come under criticism by consumer and real-estate industry groups.
PACE financing is still in its early stages of maturity and will likely undergo changes via national lending standards or regulation in the future. However, the growing popularity of the loans demonstrates the critical role that creative financing can play in renewable and energy efficient retrofits and upgrades.
The Wall Street Journal: Americas Fast-Growing Loan Category Has Eerie Echoes of Subprime Crisis
HousingWire: FHA to Begin Insuring Mortgages with PACE Loans
This report is part of the Clean Tech & Sustainability Minute series. To view all featured Minutes, please click here.
Additional Contributing Author: Scott Roulston
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