EuroPACE, a three-year project that kicked off in February 2018, will develop a scalable on-tax financing mechanism to unlock the massive potential for deployment of energy-saving and energy generation technologies. Inspired by US PACE, a successful project developed in California in 2008, EuroPACE will address fundamental challenges to energy efficiency investment:
- With a market-based approach—EuroPACE will deploy private capital as upfront financing to homeowners, effectively reducing the reliance on grants and subsidies.
- By de-risking investment in energy efficiency—long-term repayment obligations will be tied to the property rather than its owner; as such, municipalities will serve as a conduit for repayment through a levy to be collected with property taxes.
- With technical assistance—homeowner decision-making will be optimized by training service contractors who are held accountable by a comprehensive consumer protection code.
- With aggregation and standardisation—standard underwriting requirements and project performance guidelines will enable project aggregation and the ability to issue "green bonds."