|Incentive Type:||PACE Financing|
|Eligible Efficiency Technologies:||Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Siding, Roofs, Comprehensive Measures/Whole Building, Custom/Others pending approval, Yes; specific technologies not identified, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps|
Note: The Federal Housing Financing Agency (FHFA) issued a statement in July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local residential PACE programs in the United States have been suspended until further clarification is provided.
Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money from the local government to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Connecticut has authorized local governments to establish such programs, as described below. (No local governments in Connecticut currently offer residential PACE financing.)
In July 2011, Connecticut passed omnibus energy legislation. In section 100, the state authorizes municipalities to create "Sustainable Energy Programs" within their respective jurisdictions (known as PACE). Municipalities that wish to establish Sustainable Energy Programs must first declare the public need for a program, then publish its intention to create a program via public notice and solicit and consider public comment. Once a program is established, the municipality is authorized to enter into a contractual assessment on the property for the amount required to complete the requested energy upgrades. The assessment is considered a lien on the property and the municipality may collect payments in a manner consistent with how the municipality collects property taxes. To finance the programs, municipalities may issue bonds, secure private funding, or state or federal funds (or a combination of these).
In June 2012, Connecticut passed the Commercial PACE or "C-PACE," which is specific to non-residential property owners. The Clean Energy Finance and Investment Authority is working to administer the C-PACE financing program.