PACE

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PACE RECAP Financing Renewable Energy

• Michelle Hickey, ISEA Program Coordinator

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Economics of Solar - PACE RECAP
In the first year net REVENUE of 919.44
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What is PACE?

• Property Assessed Clean Energy
• Enables local governments to finance renewable
  energy and energy efficiency projects on private
  property.

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How PACE Works

Provides upfront Project through Bond Issuance
Local Agency (City or County)
Property Owner (Residential, Commercial,
Industrial)
Loan paid on Property Tax Bill
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Property Owner Benefits

• Eliminates upfront costs
• Payments tied to property, not owner
• Save on energy bills
• Interest portion of annual repayment is tax
  deductible
• 20-year financing term matches payback

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City/County Benefits

• JOB CREATION
• Meet climate and renewable energy goals
• No debt or credit risk
• Saves money for residents
• 100 opt-in program with no costs to
  non-participating property owners

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Installer Benefits

• JOB CREATION
• Eliminates 1 Barrier to Sales Upfront cost
• Close more sales
• Reduces focus on ROI

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ILLINOIS SB 583

• PACE STATE ENABLING LEGISLATION
• A municipality may enter into voluntary
  agreements with the owners of property within the
  municipality to provide contractual assessments
  to finance the installation of distributed
  generation renewable energy sources or energy
  efficiency improvements that are permanently
  fixed to real property.

Effective January 1, 2010
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ILLINOIS SB 2505

• PACE Financing
• Property owners may enter into an agreement with
  Counties Municipalities (CM) to finance energy
  improvements
• CM may levy property taxes in connection with
  green energy service areas
• CM may issue bonds and may sell, assign or
  pledge those bonds to the Illinois Finance
  Authority.

ON HOLD
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ILLINOIS SB 2482

• PACE Financial Component
• Amends the IL Finance Authority Act
• Amends Counties Code and Municipal Code
• Amends Special Service Area Tax Law in Property
  Tax Code
• Provides power to purchase special service area
  bonds related to green energy special service
  area projects
• Allows any unit of government to issue special
  service area financing

ON HOLD
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Where is PACE Now?

• Last July, the Federal Housing Finance Agency
  told Fannie Mae and Freddie Mac to stop
  underwriting mortgages with PACE assessments.
• February 10th D.C. Staffer briefing on PACE
• Many organizations and states are urging Congress
  to take action and allow states to start PACE
  programs

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PACE Programs

• BerkeleyFIRST Program
• Boulder County ClimateSmart Loan Program
• Palm Desert Energy Independence Program
• Sonoma County Energy Independence Program

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PACE Resources

• www.PACENOW.com
• www.Renewfund.com
• Database of State Incentives for Renewables and
  Efficiency (DSIRE)

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IL Policy Resources

• Illinois General Assembly
• Learn about bills, sponsors, and bill status
• Illinois Board of Elections
• Find your legislators and their contact info
• Environmental Law Policy Center
• Midwests leading public interest environmental
  legal advocacy and eco-business innovation
  organization
• Illinois Environmental Council
• Track bills and legislative updates

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RECAP - Renewable Energy Certificate Aggregation
Program

• ISEA program available to members
• Pays 200/ 2011 Solar REC
• Grid-tied PV systems
• Preference to small systems (lt10 kW)

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RECs

• Represents the property rights to the
  environmental, social, and other non-power
  qualities of renewable electricity generation.
• A REC, and its associated attributes and
  benefits, can be sold separately from the
  underlying physical electricity associated with a
  renewable-based generation source.
• EPA Definition

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Energy RECs
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SRECs

• 1 MWh solar energy 1 SREC
• For every 1 MWh (1000 kWh) of energy produced by
  a Photovoltaic system, 1 Solar Renewable Energy
  Certificate (SREC) is produced
• Average 5 kW system annually generates
• 6000 kWh 6 MWh 6 SRECs

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Price of SRECs

• 2010 Price 135
• Purchased 169 SRECs
• 30 PV systems
• Total payout 22,767
• 2009 Price 65
• Purchased 84 SRECs
• 20 PV systems
• Total payout 5,437

• 2011 Price is 200
• Cap of 160 SRECs
• 40 PV systems applied
• At Capacity

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Price of SRECs

• Need more states to open market up to IL SRECs
• Illinois RPS with 6 carve out for solar will
  help for big installations
• Sustainability Plans with teeth

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Thank you!
Illinois Solar Energy Association 1281 E Brummel
Ave Elk Grove Village, IL 60007 312-376-8245 www.i
llinoissolar.org contactisea_at_illinoissolar.org