​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​PACE Canada advocates emulating the US PACE model across Canada. Why? Because it has proven itself to be extremely successful at motivating home and business owners to implement significant renewable energy and energy efficiency measures without requiring government grants. The US PACE model has achieved this success due to several key factors which the legislative framework must enable and facilitate:

​

1. PACE loan capital is sourced primarily from private funds (ensuring that every qualified application can be funded without delay upon approval);

2. The PACE legal framework creates the foundation for a PACE ecosystem designed to ensure that private-sector players (funders, administrators, consultants, contractors) actively engage in promoting and delivering PACE financing and services;

3. Recognition that Residential PACE and Commercial PACE are related but distinct programs in which:

   • R-PACE is simple for ​the homeowner to quickly review and get approved, profitable for contractors to promote, and governed by a robust homeowner protection program; and

   • C-PACE is delivered with a minimum of administrative overhead and review, relying instead on the due diligence of PACE funders and C-PACE borrowers to undertake suitable financial viability analysis prior to funding.

4. Governments limit their involvement to residential consumer protection oversight and program compliance by private sector players

5. Municipalities limit their engagement to placement of the PACE tax lien, collection of the PACE loan payments (which may be assigned to a 3rd party) and enforcement of payments in the event of a default. All all other PACE administrative responsibilities are transferred to third party administrators.

​​

Jurisdictions in the USA that have adhered to proven PACE financing best practices have seen PACE dramatically accelerate the implementation of GHG-reducing measures in residential and commercial buildings, while jurisdictions that have failed to do so have seen their PACE programs underperform at best or simply die for lack of interest.

 

Although the PACE financing tool appears straightforward, the PACE enabling legislation plays a crucial role in nurturing a thriving and robust PACE ecosystem. When the enabling legislation is based on success, it fosters a mutually beneficial environment for all stakeholders involved. PACE leverages the private sector's profit motive to support public sustainability goals, creating a large contingent of advocates and champions who encourage, educate, and persuade clients to upgrade their homes and business facilities.

 

To learn more about the traits of a successful PACE program, refer to the Canadian Home Builders Association's "What is a Net-Zero Home" page and scroll to the Helping Homeowners with the Cost of Net Zero Energy section where you will find an banner titled "More About PACE". Open the banner to read the report titled "Keys to Developing a Successful PACE Financing Program."

​

To learn more about the state of PACE in the USA visit the PACE Nation website.

​

​