Trouble With Green Energy PACE Loans

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Mark Melin
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There is a potential problem in the land of green energy. The Property Assessed Clean Energy program, known as PACE loans, assist homeowners who install solar panels and other clean energy projects. The problem is with program disclosure. According to lawyer Joe Cioffi, there are financial repercussions accruing to which homeowners and even small banks with home improvement loans outstanding might not be aware.

Pace loans facilitated by installers and other repairmen with an interest in closing a deal

PACE loans allow a homeowner to install solar panels by obtaining a unique loan type. Not only can the loan be paid back through property taxes – governments collect the money and pay it to lenders – the loan has different priority rights, providing extra comfort to those involved in lending but upsetting a traditional lender. This loan type receives a super priority over standard second mortgage loans typically used in renovation programs.


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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.