As winter approaches, property owners will be busy performing annual maintenance on their HVAC systems to increase efficiency and life expectancy. However, nothing compares to the installation of a high-quality, energy-efficient HVAC system, and the Property-Assessed Clean Energy (PACE) statutes can be a critical factor in improving these qualities. Take a look at how PACE statutes may be the solution to today’s energy concerns.
A Bit About PACE
In 2009, Texas legislation created a bill to enable local municipalities to assess and make loans available to property owners who want to finance the installation of energy-efficient projects, especially HVAC systems. San Antonio’s Mike Villarreal was the original author of the bill behind PACE. The initial bill focused on providing funding to educational institutions to increase energy-efficiency. However, the bill became available for use by municipalities for many other property owners.
Each municipality is responsible for the creation and implementation of screening, assessment, and funding to energy-efficient improvements under the law. Essentially, a municipality must determine what properties are available for assessment, hear any comments from constituents, and include any details under the local resolution. Once the assessment has been completed, the municipality reserves the right to determine what funding sources will be used, such as bonds or financial institutions.
Since PACE allows property owners to request funds to make energy-efficient improvements to a property, a lien is placed on the property until the loan has been repaid. If a property owner sells the property, the existing lien on the property is transferred to the new owner.
PACE and HVAC Systems
Yesteryear’s HVAC systems lacked efficiency and often required large amounts of energy to function. However, newer systems and upgraded equipment uses a fraction of energy while increasing the overall output of the given system. As it pertains to HVAC systems, the installation of energy-efficient measures may include the following:
• Solar panels provide additional energy for powering existing HVAC systems.
• Solar energy initiatives may also be employed to use solar energy to heat a home, which reduces the workload on the existing HVAC system.
• Weatherization and replacement of old, antiquated ventilation systems, which would result in cleaner, warmer air for the occupants.
This is not comprehensive as any measure for increasing energy efficiency of a property owner’s HVAC system may fall under PACE statutes.
Taking Advantage of PACE in Your Area
Depending on a municipality’s resolutions under PACE, the process for obtaining financing remains relatively simple. Property owners, who would have otherwise been unable to upgrade their existing HVAC systems to more energy-efficient systems, can take advantage of PACE funding options by contacting their local municipal offices. Furthermore, nearly any lender can make a loan under this statute if approved by the respective municipality.
PACE is on track to radically change how Texans approach increasing the energy-efficiency of their HVAC systems. Increased energy-efficiency leads to savings in maintenance and energy costs. Ultimately, the only way for PACE not to work is by not starting the conversation about obtaining this cost-effective, reliable solution to the financing of energy-efficient HVAC systems.
To find out more about high-efficiency HVAC systems, fill out the online contact form today, or call us at (210) 521-1500. We also offer a variety of financing options for those unable to take advantage of the PACE program.