Background on Maine’s Home Energy Savings Loan Program and PACE Law
In December 2009, Efficiency Maine, at that time a division of the Maine Public Utilities Commission (PUC), submitted a grant proposal to the United States Department of Energy (US DOE) for federal stimulus funds (the American Recovery and Reinvestment Act or ARRA). Efficiency Maine proposed to establish a revolving loan fund to finance energy efficiency improvements to buildings in Maine.
In the Spring of 2010, the Maine legislature passed the "PACE" law (L.D. 1717). This law makes it possible for a homeowner to receive a loan for home energy savings improvements, and importantly, for that loan to be transferred from the first homeowner to a subsequent purchaser of the property. Check out this FAQ for answers to some basic questions about what a PACE loan is and how the programs are expected to work in Maine.
As explained in more detail in the FAQ, Maine’s PACE loans are different than in other states because Maine’s PACE law dictates that assessments (payments) on the loans will not be added to or treated like a property tax and do not have priority over a home mortgage.
Since the PACE law was passed, Efficiency Maine has been working with experts across the state and nation to develop a revolving loan program that will give residents from all corners of Maine access to affordable loans for energy improvements to their homes. Efficiency Maine applied for and won a competitive grant from the US Department of Energy to capitalize, administer and market this loan fund. As homeowners pay back the loans, the fund will be replenished so that we can issue loans to finance home energy savings improvements for the next round of homeowner applicants.
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