Help for Clean Energy Developers

Written by Eco Law Group
For Washington Clean Energy Developers looking to make money, have you heard of PACE? PACE (or, the Property Assessed Clean Energy) Program works by letting homeowners pay for rooftop solar arrays and energy-saving retrofits through a surcharge on their property tax bills. The cost is paid back over 10 to 20 years. In this way PACE removes high upfront costs and ensures that property owners don't lose out if it they sell -- the new buyer inherits both the home improvements and the tax assessment. PACE creates work for building contractors, cuts carbon pollution, and essentially runs on private capital, since cities and towns that offer PACE fund it through municipal bonds.



However, Fannie regulators object to the liens that PACE puts on properties, which get paid off ahead of mortgages if a borrower defaults. That adds a theoretical risk into an already jittery credit market.


This objection makes the future of PACE shaky at best.


However, the future does look bright for Clean Energy providers and developers


First, Washington incents clean energy through a variety of methods. One such incentive is ESSB 6170, which modifies business and operations (B&O) tax for wholesale manufacturers of solar energy systems, as well as solar component technicians doing business in the state of Washington. Other incentives for clean energy are business oriented and municipally-oriented to the city of Seattle.


Second, the new idea is tribal development – i.e., using tribal land to develop clean energy fields. Not only would this supply a city with cleaner and greener energy, but developers familiar with navigating tribal law would be flush with business. We will keep you posted on this as it develops.