Challenge: Property-assessed clean energy (PACE) financing enables property owners to finance investments in renewable energy and energy efficiency with a loan that is repaid through their property tax bill. Unfortunately, in many states, the enabling legislation does not include energy storage systems as an eligible investment.
Solution: State policymakers could enable local governments to decide what improvements can be financed through PACE loans. By broadening these definitions and giving local governments the ability to include new technologies in their programs, states can empower property owners to invest in batteries and electric vehicle charging stations. Increasing the availability of batteries will create good-paying local jobs across the value chain.
Examples: New York’s PACE program, Energize NY, allows loans to finance investments in renewable energy, energy efficiency, and demand management technologies, which include battery and thermal energy storage, fuel cells, and combined heat and power.
California’s PACE legislation lists renewable energy systems, electric vehicle charging infrastructure, and energy/water efficiency upgrades as eligible investments. Under these guidelines, a number of PACE programs have helped finance battery energy storage and fuel cell projects.