San Francisco businesses will be able to tap into $150 million in lending for energy efficiency, renewable energy and water conservation projects, reports the San Francisco Business Times.
The Property Assessed Clean Energy (PACE) program will let property owners pay back the cost of improvements over 20 years on their property taxes.
The loans will be attached to the property, not the owner, reports USA Today. In addition to commercial properties, the program is open to residential properties.
Property owners who have paid taxes on time for the past three years will be eligible for loans of up to $50,000, reports the New York Times.
San Francisco’s mayor’s office has estimated that 45 percent of the city’s emissions are related to energy used in local buildings.
The program is privately backed by Renewable Funding, an Oakland firm that will administrate the program through bonds.
On a national basis, in October Vice President Joe Biden announced the Recovery Through Retrofit program, a federal framework that sets the standard for such property tax financing to fund installation of renewable energy, as well as energy efficiency retrofits.