Local Option - Property-Assessed Clean Energy Financing (Rhode Island)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Rhode Island

Name Local Option - Property-Assessed Clean Energy Financing
Incentive Type PACE Financing
Applicable Sector Residential
Eligible Technologies Photovoltaics, Wind, Fuel Cells using Renewable Fuels, Energy Storage, Yes; specific technologies not identified
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


NOTE: '''''In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Rhode Island has authorized local governments to establish such programs, as described below. (Not all local governments in Rhode Island offer PACE financing; contact your local government to find out if it has established a PACE financing program.)

After January 1, 2014, a town or city council may adopt a resolution to designate itself a PACE municipality. Homeowners living in a PACE municipality can enter into a written agreement with the local government to have a PACE assessment lien placed on their property. The lien will be subordinate to all other liens on the property at the time the PACE lien takes effect.

The Rhode Island Office of Energy Resources will contract with an approved financial institution to create a Loan Loss Reserve Fund. In the event that there is a foreclosure on a property with a PACE assessment, the Loan Loss Reserve Fund will cover the past due balance of the PACE assessment. The Rhode Island Office of Energy Resources will also publish a list of eligible types of energy efficiency and renewable energy projects that will qualify for PACE financing. The office will also develop informational resources to help residents understand PACE financing, and provide technical assistance to and offer to manage PACE programs on behalf of any PACE municipality.

Authorities (Please contact the if there are any file problems.)

Authority 1: HB 6019 Sub A
Date Effective 2013-07-15
Date Enacted 2013-07-15

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


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