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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

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North Carolina

North Carolina

Incentives/Policies for Renewables & Efficiency

Printable Version
Local Option - Clean Energy Financing   

Last DSIRE Review: 05/05/2014
Program Overview:
State: North Carolina
Incentive Type: PACE Financing
Eligible Efficiency Technologies: Locally determined
Eligible Renewable/Other Technologies: Locally determined
Applicable Sectors: Commercial, Industrial, Residential, Multi-Family Residential, Low-Income Residential, Agricultural
Terms:Locally determined
Start Date:8/26/2009
Expiration Date:07/01/2015
Authority 1:
N.C. Gen. Stat. § 153A-210.1, et seq.
Authority 2:
N.C. Gen. Stat. § 160A-239.1, et seq.
Summary:

Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.


Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. North Carolina has authorized certain local governments to establish such programs, as described below. (As of May 2014, no community in North Carolina offers PACE financing; contact your local government to find out if it has considered establishing a PACE financing program.)

In August 2009, North Carolina enacted legislation (S.B. 97) that authorizes* counties and cities to make special assessments in order to finance the installation of "distributed generation renewable energy sources or energy efficiency improvements that are permanently fixed to residential, commercial, industrial or other real property." Counties and cities that choose to adopt such programs may finance them by revenue bonds, general obligation bonds or general revenues.

For more detailed information, see the University of North Carolina School of Government's resources on the subject:

 

* As of May 2014, no cities or counties in North Carolina have created a PACE program.


 
Contact:
  Jeff Hughes
The University of North Carolina at Chapel Hill
School of Government
Campus Box 3330, Knapp-Sanders Building
Chapel Hill, NC 27599
Phone: (919) 843-4956
E-Mail: jhughes@sog.unc.edu
Web Site: http://www.sog.unc.edu
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.