With Florida’s abundant sunshine and rising energy costs, solar power has become an attractive option for homeowners looking to save on utility bills and reduce their environmental footprint. While installing solar panels can lead to significant long-term savings, the upfront costs can be a barrier for many. That’s where the Property Assessed Clean Energy (PACE) program comes in. PACE financing allows Central Florida homeowners to install solar panels with no upfront payment, repaying the investment over time through their property taxes. In this guide, we’ll explore how to finance solar panels with PACE in Central Florida and the benefits this approach offers.
Why Solar Panels Are a Smart Investment in Central Florida
Central Florida is one of the sunniest regions in the United States, making it an ideal location for solar energy. Solar panels allow homeowners to generate their own electricity, lowering their dependence on the grid and significantly reducing energy bills. Beyond cost savings, solar energy is also an environmentally friendly option that reduces carbon emissions by replacing fossil-fuel-based power with renewable energy. With favorable net metering policies in Florida, homeowners can even earn credits for excess energy generated by their solar panels, maximizing the financial benefits of solar power.
Challenges of Solar Panel Installation Costs
While the benefits of solar energy are clear, the initial costs of installing a solar panel system can range from $15,000 to $30,000 or more, depending on the size and specifications of the system. For many homeowners, this upfront expense can make solar installation financially challenging. Traditional loans can help, but they often come with credit score requirements and may require high-interest payments. PACE financing offers a flexible, accessible alternative by covering 100% of the upfront cost and allowing homeowners to repay over time with fixed, low-interest payments.
How PACE Financing Works for Solar Panels
PACE (Property Assessed Clean Energy) financing is a unique funding solution that enables homeowners to make energy-efficient, renewable energy, and storm-resistant improvements to their homes. Unlike traditional loans, PACE financing is repaid through property taxes over a fixed term, usually 10 to 25 years. Here’s how PACE financing works for solar panels:
- No Upfront Cost: PACE covers 100% of the installation costs, so homeowners can proceed without a large initial payment.
- Based on Property Equity: Approval for PACE financing is based on property equity rather than credit score, making it more accessible to a broader range of homeowners.
- Transferable Financing: If a homeowner sells their property before the PACE loan is fully repaid, the remaining balance transfers to the new owner, as the financing is tied to the property rather than the individual.
Benefits of Financing Solar Panels with PACE
- Immediate Savings with No Upfront Payment
With PACE financing, homeowners can install solar panels immediately without worrying about the upfront cost. This allows them to begin saving on their energy bills from day one. Since PACE payments are tied to property taxes, homeowners can avoid the high monthly payments often associated with traditional loans and pay a consistent amount as part of their tax bill.- Example: A homeowner in Orlando installs a solar panel system through PACE and immediately reduces their electricity bill by up to 70%. The monthly savings from solar offset the added tax payment, allowing the homeowner to save on energy costs without additional financial burden.
- Accessible to More Homeowners
Because PACE financing is based on property equity rather than credit score, it’s accessible to a wider range of homeowners, including those who may not qualify for conventional loans. Homeowners with sufficient equity can qualify, making solar power a realistic option for more Florida residents. - Fixed, Low-Interest Payments
PACE financing offers fixed interest rates, which means that homeowners know exactly what to expect each year. This stability contrasts with other types of loans, which may have variable rates, and helps homeowners budget more effectively. The fixed rate also ensures that homeowners aren’t affected by market interest rate fluctuations, making PACE a reliable, long-term financing solution. - Increased Property Value
Solar panel installations increase the value of a home, making it more attractive to potential buyers. Homes equipped with solar energy systems often sell faster and at a premium due to the appeal of lower utility bills. With PACE financing, homeowners can increase their property’s marketability and resale value without worrying about repaying the balance if they sell the home; the financing is transferred to the new owner. - Environmental Impact
By choosing solar, homeowners can reduce their carbon footprint and contribute to environmental sustainability. Solar energy decreases reliance on fossil fuels, lowers greenhouse gas emissions, and helps preserve Florida’s natural beauty for future generations. PACE financing empowers homeowners to make an environmentally conscious decision without the financial strain of upfront costs.
Steps to Get Started with PACE Financing for Solar Panels
- Determine Eligibility
The first step is to determine eligibility for PACE financing, which primarily depends on property equity. Homeowners can work with a PACE provider to complete a simple application, and many receive approval quickly. Since the approval process doesn’t require a credit check, it’s more accessible to homeowners with diverse financial backgrounds. - Consult with a PACE-Approved Solar Contractor
Once approved, homeowners can consult with a PACE-approved contractor to assess their home’s solar potential. The contractor will evaluate the roof’s orientation, shade, and sun exposure to recommend a system size and configuration that maximizes energy production. - Select and Install the Solar Panel System
After consulting with the contractor, homeowners can select the solar panel system that best fits their needs and budget. The installation process typically takes a few days, depending on the system size and complexity. Once the installation is complete, the solar system will begin generating energy immediately, allowing homeowners to enjoy savings from day one. - Repayment Through Property Taxes
With PACE financing, repayment is structured as part of the property tax bill, making it manageable and predictable. This unique payment structure enables homeowners to budget easily, as payments are fixed and spread out over an extended period.
Real-Life Example: A Hypothetical Case Study of PACE-Financed Solar
Let’s consider the experience of a Central Florida homeowner who wants to reduce their energy bills and carbon footprint. With PACE financing, they install a 5-kilowatt solar panel system that costs $20,000. Without paying anything upfront, they start generating power immediately and reduce their utility bills by 60% each month. Over the 20-year PACE term, the monthly savings on their electricity bill offset the additional amount on their property tax bill. As a result, they enjoy both energy independence and substantial cost savings without financial strain.
If they decide to sell the property five years later, the remaining PACE balance transfers to the new owner, preserving the investment’s value and providing an appealing feature to buyers who recognize the benefits of solar energy.
FAQs About Using PACE Financing for Solar Panels
- Is there a prepayment penalty with PACE financing?
No, homeowners have the flexibility to pay off the PACE loan early without incurring penalties. This gives them more control over their financial plan and allows for early repayment if they prefer. - What happens if I sell my home?
One of the key advantages of PACE financing is that it’s tied to the property, not the individual. If you sell your home, the PACE financing transfers to the new owner, allowing you to move without the obligation to repay the balance in full. - Can I combine solar with other PACE-eligible upgrades?
Yes, PACE financing covers a range of energy-efficient upgrades, so homeowners can combine solar installation with other improvements like new HVAC systems, insulation, or impact-resistant roofing, enhancing overall energy efficiency and home value.
Conclusion
PACE financing offers Central Florida homeowners an affordable, accessible way to finance solar panel installation, making it possible to enjoy the financial and environmental benefits of solar energy without the burden of upfront costs. With options for fixed, low-interest payments and transferability, PACE financing empowers homeowners to make a lasting investment in their home’s energy efficiency and value. If you’re ready to explore solar energy for your home, consider using PACE financing to help make the transition easy and affordable. Contact a PACE-approved contractor today to get started on your journey to clean, renewable energy.
Want to Learn More?
The PACE program offers an excellent opportunity for Florida homeowners to finance essential energy-efficient upgrades without upfront costs. By partnering with Guardian Home, you can enhance your home’s comfort, safety, and value while contributing to a more sustainable future. Contact us today to schedule your free consultation and start your journey towards an energy-efficient home. Contact us today!
