Property Assessed Clean Energy (PACE) financing is a municipal financing mechanism that allows homeowners to fund energy efficiency and renewable energy upgrades through a charge attached to their property rather than a personal loan. It's available in select Ontario municipalities and offers a unique repayment structure.
PACE (Property Assessed Clean Energy) is a financing model where a municipality facilitates a loan for energy upgrades and the homeowner repays it as a charge on their property tax bill. Because the debt is attached to the property rather than the owner's personal credit, PACE can be used by homeowners who don't qualify for conventional financing — and the debt transfers to the new owner if the home is sold.
In Ontario, PACE programs have been introduced through a select number of municipalities. The availability and terms vary by region. Some programs are run directly by municipalities; others are facilitated through third-party administrators.
Unlike a personal loan, a PACE charge stays with the home when it's sold. This is a significant consideration: buyers must be aware of the outstanding charge and factor it into purchase negotiations. We make sure clients understand this structure fully before proceeding.
The eligible measures vary by program. Some Ontario PACE programs have specific lists of approved upgrades; others are broader.
For most Ontario homeowners, the Canada Greener Homes Loan (0% interest, up to $40,000) is a more favourable primary financing tool when available. PACE becomes most relevant when a homeowner has exceeded the Greener Homes Loan limit, doesn't qualify for conventional financing, or is in a municipality with an active PACE program that covers specific upgrades efficiently.
We evaluate the full financing landscape — PACE, Greener Homes Loan, utility financing programs, and conventional options — as part of the advisory process for every major retrofit project.
PACE is one option. We map every available rebate and financing program — and recommend the best combination for your specific situation.
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