Figtree Financing, a California-based private PACE financing firm, has recently launched OnDemandPACE™, a new program designed to reduce the cost of financing and allow PACE projects to be structured in as little as 15 days. The program provides 100% financing for HVAC, solar, cool roofing, lighting, and more, and is currently available in a number of participating California areas.
As noted in an EcoReport article by Roy L. Hales (April 2, 2014):
During the past year, the San Diego based financial company has doubled in size. They are now operating in 50 Californian cities and counties. That is about to increase. Figtree has partnered with a large New York-based financial institution for up to $60 million in committed capital to fund commercial PACE energy upgrades.
The funds were secured by KGS Alpha on behalf of Figtree, which structured a 100% capital facility to fund originations, with a securitization takeout by Figtree on the back end and a sharing of economic gains.
According to Figtree CEO Mahesh Shah,
“Figtree is the first private program to bring committed capital financing to commercial PACE projects. This capital will support proven demand for energy upgrades, ultimately driving Figtree’s offering to a national product and platform that gives property owners access to the capital they both want and need.”
Hales writes:
Getting financing for 50 to 250 kW solar systems ($100,000 to $500,000), can be very difficult. Most financial institutions have strict credit underwriting guidelines and businesses with less than $30 million might not qualify. Even if they do, the amortization is usually only 7 to 10 years and the payments can be higher than energy savings.
When moving into larger projects (>$500,000) where PACE is competing with other financing alternatives it can still be the best option for the property owner because PACE is the only long term purchase financing option available.
PACE offers 100% financing, at a low fixed rate with no money down, that is paid back through annual property taxes over a twenty year period. Customers using PACE to install solar panels usually experience an immediate positive cash flow, especially if they take advantage of the 30% Federal ITC, local rebates, and system depreciation.
Through its Registered Contractor program, Figtree offers training, and customer engagement support services to help contractors sell PACE financing more effectively; and helps property owners with project analysis and obtaining mortgage lender consent.