As efforts to curb energy demand turn to the residential sector, enabling homeowners to invest in energy-saving home improvements has become an increasingly hot topic among regulators, activists, and industry players. Property Assessed Clean Energy (PACE) financing programs are one such tool for financing energy efficiency and renewable energy home improvements. Under a PACE financing program, the cost of such home improvements is paid back as part of the homeowner's annual property taxes via a special assessment on the home.
According to a new independent survey from Pike Research, homeowner interest in this concept is strong, with 42% of respondents stating that they would be "extremely" or "very" interested in taking advantage of such a program. The survey results are included in a free white paper, which is available for download on Pike Research's website.
"Financing programs such as PACE are important tools for adoption of residential energy efficiency and renewable energy improvements," says Pike Research president Clint Wheelock. "Many PACE financing programs are currently suspended due to the concerns of government mortgage agencies Fannie Mae and Freddie Mac, but it is clear that whatever the structure, there is strong consumer demand for some kind of similar financing mechanism."
Pike Research's survey found that, among consumers interested in a PACE program, the percentages of respondents who would consider implementing each of the following home energy efficiency improvements would be as follows:
- Tankless hot water heater: 63%
- Solar panels: 63%
- High efficiency air conditioner/evaporative coolers: 58%
- Insulation: 58%
- Solar hot water heater: 51%
- High efficiency furnace: 48%
- Storm windows: 48%
- Air sealing/duct sealing: 47%
- Insulating exterior doors: 46%
- Programmable thermostats: 41%
- Reflective roof shingles: 40%
- Small wind turbine: 37%
- Insulating shutters: 23%
- Wood/pellet stove: 15%
- High efficiency pool pump: 12%
Among homeowners who stated they would not be interested in a PACE financing program, the most popular reason was that they would not want to take on the additional financial liability (56%).
Pike Research's white paper, "PACE Financing Consumer Survey", examines consumer demand for the financing of energy efficiency home improvements. The study is based on a web-based survey of more than 1,000 U.S. adults using a nationally representative and demographically balanced sample. Focusing on the 669 single family homeowners within the survey sample, the white paper analyzes consumer preferences and attitudes related to the concept of PACE financing.
source: Pike research
