Going green within means
It’s not always cheap to go green.
Even on Earth Day, when environmental awareness is high, tight budgets can get in the way of green intentions.
Sure, using cloth grocery bags or composting don’t exactly strain the pocketbook. But some home retrofits that have big energy savings potential can also carry big price tags.
Take solar panels. While they help homeowners save on electric bills in the long run and reduce pollution, a new system can cost from $15,000 to $30,000.
But legislation that has already passed the Missouri House could soon change the way home and business owners finance energy-efficient and renewable-energy improvements in the future.
Known as Property Assessed Clean Energy, or PACE, the program authorized by the legislation would allow counties and cities to voluntarily establish clean energy development boards, which could issue bonds to finance items such as solar electric systems, geothermal heat pumps and better insulation.
If granted approval by those boards, home or business owners would repay project costs over 20 years through a special assessment on their property taxes.
Spreading out those payments would mean home and business owners could reap immediate awards, both economic and environmental, said Erin Noble, energy policy coordinator for the Missouri Coalition for the Environment.
“PACE is a game changer on the energy-efficiency and renewable-energy front,” Noble said. “In this economy, up-front costs can be rather prohibitive for home and business owners and keep them from pursuing these upgrades. This legislation helps remove those cost barriers.”
California was the first state to adopt PACE financing in 2008. Since then, about 13 states including Illinois have adopted enabling legislation.
Here, the legislation was spearheaded by Renew Missouri, a project of the Missouri Coalition for the Environment. With bipartisan support, it sailed through the House on a 137-9 vote and now heads to the Senate. Meanwhile, a separate version of the bill has cleared a Senate committee.
“Making these conversions to buildings is good policy,” said Sen. Joan Bray, D-University City, sponsor of the Senate bill. “But there’s always this issue of cost.”
The Missouri Municipal League is backing PACE, and several cities such Kansas City, Creve Coeur and Ferguson have adopted resolutions voicing support.
Rosalind Williams, Ferguson’s director of planning and development, was an early supporter of the legislation.
“Really, this is a great way cities can help residents save money during these economic times because they’re going to see their utility bills go down,” she said. “And it helps a city improve its housing stock, making it more attractive to prospective buyers.”
Cities and homeowners wouldn’t be the only ones to benefit from PACE.
Missouri businesses that provide energy retrofits stand to pick up more business if they have more customers who can afford improvements.
Dane Glueck, president of StraightUp Solar, said he hears prospective customers cite price as a potential impediment “almost on a daily basis.”
“A solar electric system is going to pay back a customer over time,” Glueck said. “But right now, a lot of people are anxious about putting money up front given the uncertainty in their own lives. With PACE, they’re able to spread out the cost of the investment, and that just makes a lot of sense to a lot of people.”
Glueck said he also thought PACE would allow businesses like his to hire more people to cater to increased demand.
Projects financed through PACE are required to save money, and energy audits may be included in the cost of the program. Upon sale of the property, remaining tax liability transfers, and energy savings are passed along to the next owner.
Marc Bluestone, president of Home Green Home, a St. Louis-based energy audit provider, said the provision of PACE that requires audits provides a safety net to both the bond provider and homeowner.
“Making a home more energy-efficient starts with good information,” he said. “Right now, a lot of homeowners have a tendency to self-diagnose, and more often than not, they’re going to be wrong.”
While most homeowners will be able to afford many of the improvements identified in the audit, only about one-fifth of his customers can pay for them all at once, Bluestone said.
“Even people who realize they’re going to be reaping savings over time might struggle with writing that initial check,” he said. “That’s where PACE comes in and works beautifully.”
The bills are SB1037 and HB1871.
