Last DSIRE Review: 12/03/2009
Program Overview:
| State: |
Vermont |
| Incentive Type: |
PACE Financing |
| Eligible Efficiency Technologies: |
Ceiling Fan, Water Heaters, Lighting, Furnaces , Boilers, Heat recovery, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Duct/Air sealing, Building Insulation, Windows, Doors, Motors, Motor-ASDs/VSDs, Comprehensive Measures/Whole Building |
| Eligible Renewable/Other Technologies: |
Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Daylighting, Small Hydroelectric |
| Applicable Sectors: |
Commercial, Industrial, Residential, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional |
| Financing Terms: | Financing may not exceed 15% of assessed property value; combined amount of assessment and outstanding mortgages may not exceed 90% of assessed property value. In the case of an agreement with the resident owner of a dwelling, the maximum amount to be repaid for the project shall not exceed $30,000 or 15%, whichever is less.
| | Eligible Local Governments: | Cities, towns, incorporated villages
| | Possible Revenue Sources: | Bonds, payments collected for reserve fund
|
Summary:
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 up to 20 years. Vermont has authorized local governments to establish such programs, as described below. (Not all local governments in Vermont offer PACE financing; contact your local government to find out if it has established a PACE financing program.)
Vermont enacted legislation in May 2009 (Act 45) that authorizes local governments to create districts (Clean Energy Assessment District) to provide financing to property owners for renewable energy and energy-efficiency projects. Voter approval is required to establish a financing district. Eligible renewable-energy technologies include solar water and space heating, photovoltaics (PV), biomass energy heating systems, small wind systems, and micro-hydroelectric systems. Eligible energy-efficiency projects have been determined by Efficiency Vermont and Burlington Electric Department and include efficiency measures that are permanently attached to the property and reduce the net energy requirements of the building. Some examples include insulation, window replacements/renovations, energy efficiency heating systems, among others. See their Eligibility of Projects for Vermont Clean Energy Assessment District (CEAD) Financing Guide for more information. Participating property owners must conduct an energy audit to quantify project costs, energy savings and carbon impacts.
Property owners may opt in to a program by signing a contract with the municipality's Clean Energy Assessment District. The contract specifies the amount of the loan, the terms of repayment and the associated risks. The property owner must agree to a special assessment and lien on the property. The municipality is responsible for administering the program and may create a reserve fund in the event of foreclosure of participating properties. The municipality may release a lien on a property once the property owner has met the terms of the loan, or in the event of a foreclosure.
Additional resources are available on the Vermont Energy Investment Corporation's web site. |
