Ohio

 
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. Ohio has authorized certain local governments to establish such programs, as described below. (Not all local governments in Ohio offer PACE financing; contact your local government to find out if it has established a PACE financing program.)  
 
Legislation enacted in Ohio in July 2009 (HB 1) expanded the state's existing special improvement district law by authorizing local municipalities and townships to create special energy improvement districts that offer property owners financing to install photovoltaic (PV) or solar-thermal systems on real property. Participating municipalities may issue bonds (either special or general obligation funds) and/or apply for state or federal money in order to fund such programs. Any property owner who opts in to the program and installs solar using municipal financing must agree to a special assessment on the property tax bill for up to 25 years in order to pay back the loan.  
 
Municipalities and townships interested in creating such districts and providing financing for property owners must circulate a petition for eligible property owners to opt in to the program. Interested and eligible property owners must provide their solar -energy project plans as part of the petition, as it would serve as the request and basis for levying the special assessment on the participating owners' property. Once the petition is complete and property owners have opted in, the municipality must approve a special energy improvement district via ordinance or resolution. A special improvement district board of directors must be created (if one did not already exist) to implement the program. Each local municipality must determine specific eligibility criteria, the maximum loan amount and interest rates, and other loan terms. Unlike regular special improvement districts in Ohio, a special energy improvement district does not have to be comprised of contiguous properties.  
 
The state law authorizing property tax financing in Ohio was inspired by grassroots efforts in Athens, which has announced plans to develop a program -- the Athens Solar Initiative -- to support solar-energy installations by property owners.  
 
For additional information and details about PACE financing in Ohio, see http://www.bricker.com/legalservices/practice/green/esid/.