Morningstar report finds PACE a low-risk and transparent form of financing energy upgrades

Written By: Stratton Report
March 6, 2017

renovate america

On March 6, PACE financier Renovate America called attention to a new report by investment research firm Morningstar that calls PACE a “beneficial” means by which owners can make energy and efficiency upgrades to their properties.

According to Renovate, Morningstar’s report accurately maintained that there was little credit risk associated with PACE financing, and called attention to oversight of the PACE industry by government authorities and its consumer-disclosure framework that the research firm said will increase transparency and consumer protections.

Renovate quoted:

Morningstar views PACE as a beneficial program that offers corporations and consumers the opportunity to affordably implement energy-efficiency and energy-renewable upgrades. We believe that a PACE assessment does not materially increase the risk to the underlying mortgage, as energy efficiency improvements should bolster property values and lead to tax and utility savings. As recognition of the nuances in this asset-based obligation becomes widespread, acceptance should fuel future growth.