Texas lawmakers open new financing program for renewable energy
When it comes to renewable energy adoption, financing can mean the difference between a project’s success and failure. Renewable energy is rarely an inexpensive matter and if there are no financing plans in place to support adoption, consumers may be disinclined to show favor for renewable energy in any way. In Texas, the matter of financing has been receiving strong attention. This week, the Texas Legislature has passed Senate Bill 385, which aims to establish new PACE programs for the commercial and industrial sectors.
PACE financing may help businesses embrace clean energy
PACE refers to property assessed clean energy and is most often used to identify financing programs that are meant to provide financial support to renewable energy endeavors in certain sectors. In Texas, PACE financing has been largely reserved to the residential sector, where it has helped support the adoption of solar energy systems managed by homeowners. Texas lawmakers consider these financing programs to be moderately successful in the residential sector and believe that the time is right to begin encouraging businesses to embrace renewable energy.
Lawmakers expect businesses to respond well to new financing option
Senate Bill 385 will allow businesses to borrow money from private lenders and repay these funds on an annual basis through assessments on their property taxes. All parties participating in PACE financing do so voluntarily and there is a great deal of flexibility that exists in such programs. Lawmakers believe that businesses will respond well to PACE financing, as it will help cover the costs of energy efficiency conversions and the installation of renewable energy systems.
Costs of renewable energy often drive adopters away
The costs associated with renewable energy often drive businesses away from adoption. While renewable energy is often associated with long-term economic gains, the initial costs of installing clean energy systems are sometimes considered excessive for some businesses. In the residential sector, these costs have been significantly reduced through PACE programs.