Glossary
PACE (Property Assessed Clean Energy)
PACE (Property Assessed Clean Energy) is financing for solar, roofing, air conditioning or efficiency upgrades that is collected as a special assessment on your property tax bill. It is approved based on home equity rather than credit score, and it is recorded as a lien on the property with priority over the mortgage.
What PACE is
A PACE program is run by an entity authorized by the county or city. You apply, the contractor installs, and the amount is added to your annual property tax bill as a separate line for the agreed term. You pay it along with your taxes, usually through your mortgage escrow.
It is not a government program or a subsidy, although many salespeople present it that way. It is private financing that uses the county’s tax collection mechanism. It is called a “special assessment.”
Why it matters in Florida
PACE is available in many Florida counties and is sold aggressively to homeowners who do not qualify for a traditional loan, because approval looks at equity rather than FICO. That makes it accessible, and also dangerous: the payment is added to your taxes, and failing to pay property taxes can end in losing the house.
The PACE lien also takes priority over the mortgage. Many banks will not refinance or issue a new mortgage while a PACE lien exists, so when you sell or refinance you may be forced to pay it off in full.
Common mistake
Believing that “it is paid with your taxes” means it is cheaper. PACE rates are usually higher than a loan with good credit, and there are closing costs. Before signing, ask for the equivalent APR, the total cost, and a letter from your mortgage lender confirming it accepts the lien. The details and alternatives are in PACE financing explained.
Full guide: PACE in Florida explained: paid through your property tax, and it complicates selling →
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