The U.S. Department of Energy’s (DOE) Best Practice Guidelines for Residential PACE Financing Programs (published Nov. 18, 2016) outline best practices that can help state and local governments, PACE program administrators, contractors, and other partners develop and implement programs and improvements that effectively deliver home energy and related upgrades through residential PACE. The guidelines are an update to a 2010 version, “Guidelines for Pilot PACE Financing Programs,” and supersede its recommendation.

The  guidelines focus on best practices for program design, including consumer and lender protections; compatibility of residential PACE with other energy efficiency programs and services; minimum contractor requirements and performance standards; and evaluation of program outcomes, including cost effectiveness, energy savings, and non-energy benefits such as improved health and comfort.

DOE encourages existing and prospective residential PACE financing programs to use these guidelines to design programs that meet the specific needs of their states and communities.

Commercial Property Assessed Clean Energy Programs

Commercial property assessed clean energy (C-PACE) programs exist in several states, regions, and local governments. Programs vary across several dimensions including the level of organization (statewide vs. local programs), financing structures, and eligible measures. As of early 2017, more than 30 states plus the District of Columbia have commercial PACE enabling legislation and approximately $400 million in projects have been financed with commercial PACE.

Residential Property Assessed Clean Energy Programs

Residential PACE programs have recently received considerable attention and regulatory scrutiny. Recent Federal Housing Finance Agency guidance letters have caused many residential PACE programs to suspend operations, but they do not directly affect commercial PACE programs.