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around electrification and cleantech. Be sure to visit us at goelectricshow.com
In this episode, Richard Gonzales shares his expert insight on Ygrene financing and how they play a role in cleantech and going green.
Ygrene offers an alternative way to finance energy-efficient and renewable energy upgrades for residential and commercial properties in California, Georgia, Missouri, and Florida.
An Introduction to Ygrene and Pace Financing
Property-assessed clean energy programs (PACE) financing is a growing movement in the United States.
As an example of PACE financing, Ygrene provides 100% financing to help property owners make energy-efficient improvements or complete renewable energy projects.
How Does PACE Financing Differ From Other Loans?
First and foremost, it’s important to understand that PACE financing is not a loan. Instead, PACE is tied directly to the assessment of a property. As a result, it doesn’t follow a credit history, whether you’re a company or an individual.
There are certain concerns associated with PACE finances, which Ygrene addresses in various ways such as the following;
● Ensuring quality contractors through a thorough vetting process
● Educate property owners on the nature of PACE as an assessment and not a loan
● Raise awareness on the role of PACE financing in the marketplace
The Demand for PACE Financing
The residential market is a lot bigger than the commercial market, with more than 141 million units throughout the United States, and an average of $350,000 per unit valuation. While the commercial is smaller, it is still a large figure and commercial developments tend to impact residential trends.
Richard explains, “We’ve seen an increase in demand on both sides simultaneously, and that is simply because of the awareness that is out there for climate change and energy efficiency.”
With that being said, capital deployed into the commercial side is more efficient, with bigger ticket items and larger assessments. The commercial sector offers many opportunities for improved efficiency through the likes of solar, insulation, improved water efficiency, lighting, soft-flow plumbing, and more.
Many of these improvements may qualify for PACE financing, even if they are not measured on the energy bill.
Technologies Leading the Way from a Green, Cleantech Perspective
Solar is one of the most important improvements that a property owner can make, as well as EV charging stations.
Richard says, “EV does two different things. It attracts new customers and people like to see that a firm is being progressive. It also helps make some money on top.”
The hospitality sector is leading the way by using PACE financing to improve their commercial properties. Many of these decisions are based on customer surveys which highlight how guests are demanding energy efficiency.
Multi-family has also been a consistent base for PACE financing, as well as large industrial buildings.
Increased Awareness of PACE financing
While Ygrene is available in four states, there are plans to enhance the availability of PACE financing across the country.
Richard explains, “Most states have passed legislation for this type of financing agreement, but many have not enabled it yet.”
Richard continues to offer assistance in contacting the state to fast-track the availability of PACE financing.
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