Gov. Tom Wolf signed a bill Tuesday establishing a program designed to enable funding for energy efficiency, renewable energy, and water conservation upgrades to commercial and industrial properties.
Under the new legislation, Senate Bill 234, local governments can choose to develop or participate in a Property Assessed Clean Energy (PACE) program. Private lenders can then provide financing through the program to building owners for energy efficiency and clean energy technology projects. The local community then collects an assessment on the building over a period of years and remits the payment to the lender to pay for the retrofit.
“This innovative financing mechanism will support the creation of new clean energy and energy efficiency projects throughout the commonwealth, while also enhancing property values and employment opportunities while lowering the costs of doing business,” Wolf said. “The implementation of this economic development tool in Pennsylvania is yet another example of the bipartisan work that can come out of Harrisburg when we work together on common sense legislation.”
Thirty-three states plus the District of Columbia currently authorize PACE financing for clean energy and energy efficiency projects. PACE loans can be used to pay for improvements such as new heating and cooling systems, solar panels, lighting improvements, water pumps, and insulation.
“We’re excited for the potential of PACE to attract investment and boost economic development here in Pennsylvania,” Jeffrey Scarpello, executive director of the Penn-Del-Jersey Chapter of the National Electrical Contractors Association, said. “PACE financing will help our contractors provide needed energy solutions for their commercial and industrial customers while putting electricians to work.”