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. Wisconsin has authorized certain local governments to establish such programs, as described below. (Not all local governments in Wisconsin offer PACE financing; contact your local government to find out if it has established a PACE financing program.)
Wisconsin enacted legislation
(AB 255) in May 2009 that amended local governments' existing authority to impose "special charges" for certain services. Originally, local governments were authorized to enact an ordinance to charge its citizens for "services," such as snow/ice removal, garbage collection, recycling, weed control, among others. AB 255 added energy efficiency improvements (that per the definition also includes renewable energy) to the list. Furthermore, the legislation authorized local governments to make a loan to residential property owners for energy efficiency and/or renewable energy improvements. The repayments would be considered a "special charge" and may be collected in installments and may be passed on to the next owner of the property if not completely repaid by the time of sale via the property tax.
Each local government that chooses to offer a PACE financing program must determine the eligible energy efficiency or renewable energy technologies, identify a funding source, develop the terms of the loan, and program specifics.
Milwaukee is developing a PACE program known as "
Milwaukee Energy Efficiency (Me2)." See the program web site for additional information.
