PACE Financing
Property Assessed Clean Energy (PACE) is a financing mechanism that was approved for use in Missouri by the legislature a few years ago. The way this financing works is that the home or the property itself takes out the loan for the solar array as opposed to the individual. The individual pays the loan back through monthly payments via an escrow account (if the home is still under mortgage), and then the escrow account covers an additional line item that is added to property taxes, which is the solar loan. It is important to note that this does not increase your property taxes themselves, it increases the bill that is sent to you until the solar is paid off. The local government then pays the financing institution that offered the loan in the first place as opposed to paying the finance institution directly. The benefit of this financing is that the loan stays with the home. When the resident that installed solar moves out the new resident that moves in continues to pay for the solar array.
State Sponsored Loans
MO Linked Deposit Alternative Energy Loans
Through this State Treasurer’s program, participating banks and credit unions offer 2-3% interest loans to both individuals and businesses. This program has been infrequently used for solar electric projects due to certain limitations. However, the program is well-funded and worth looking into.