PACE Maritimes - 2/3 - Stratford

PACE Atlantic CIC is launching PACE Maritimes, a multi-provincial Property Assessed Clean Energy (PACE) program. The initial scope of the program will include Stratford (PE), Charlottetown (PE) and Wolfville (NS), but it will eventually extend to elsewhere in the Maritimes. PACE Atlantic is a registered community interest corporation (CIC), which is a hybrid corporate model consisting of a private corporation with a public benefit mandate.

The program will fund residential projects for energy efficiency, renewable energy and energy storage across the three municipalities.

Additional targeted programs in Wolfville and Charlottetown will provide rebates to support fuel-switching from oil (to protect the municipal water supply) and lead pipe replacement, respectively. Program participants will receive support throughout their engagement with PACE Maritimes through an online tool for customer engagement, option-exploration, advisory services, contractor selection and application/contract completion. This toolkit will be paired with a back-end workflow tool to help contractors with management reporting requirements.

The PACE Maritimes program is linked to the Partners for Climate Change Protection commitments in all three municipalities, as well as specific environmental council priorities (i.e., reducing oil spills in Wolfville and replacing lead pipes in Charlottetown).

Financing terms extended to homeowners:

• Loan amount: A maximum of 15% of the assessed home value will be available to finance efficiency and renewable energy investments. There is no minimum loan value.
• Loan terms and repayment: Repayment periods will be up to 15 years. Repayments will be made directly to municipalities through PACE liens- that are to be repaid monthly through the homeowner’s property tax bill.
• Interest rates: Currently anticipated at 2.75%, the actual rate will be based on a 0.5% span on top of the borrowing rate (which is currently projected at 2.25%).
• Underwriting criteria: Homeowner eligibility will be based on tax payment history, with the only criteria being that homeowners cannot be in arrears in their property taxes before participating.
• Additional fees or charges to participants: A 5% administration fee will be applied to each project processed through the PACE Maritimes program.
• Consumer protection measures: PACE Atlantic CIC will develop workflow tools that would include an initial review of costs as well as a certificate of completion to ensure contractors are in line with expected norms. The program will also develop a “RateMyContractor” app, which will allow homeowners to see reviews of contractors in their areas.
• Other: Homeowners can accelerate repayments at any time without penalty.

Municipalities will manage payment of contractors and registration of homeowner PACE liens on properties once work is completed. PACE Atlantic CIC will act as the program administrator and will be paid by the municipalities for this service. Provincial rebates over $5,000 will be routed through the municipalities to be applied directly against the loan amount. All other rebates will be routed directly to homeowners to apply to their loan amounts as they see fit.

Environmental benefits:

• The program is anticipated to reduce energy usage by 26,795 GJ/year and greenhouse gas emissions by 1,167 tCO2e/year across the three municipalities
• The City of Charlottetown is currently paying to replace the existing water mains that are made of lead pipes; PACE Maritimes will help to finance the lateral connections on private property, increasing program uptake
• The Town of Wolfville has identified residential oil spills as a significant risk to the municipal water supply system; PACE Maritimes will support residents in replacing oil tanks with electric heat pumps

Social and economic benefits:

• The program is expected to create more than 210 jobs across the three municipalities
• Low-income households will be targeted through strategic marketing (energy poverty is particularly acute in Nova Scotia and Prince Edward Island, with lower average incomes and higher energy costs in those provinces)

Innovative aspect(s):

• The CIC program administrator model is considered an innovative platform to support the growth of a PACE program
• The program demonstrates innovative design features including a grassroots marketing approach, complex workflow tools, context-specific upgrade options, and more

Replicability:

• PACE Atlantic CIC is already in communication with other municipalities in the Maritimes who are considering launching their own PACE programs
• Various toolkits, tools and resources will be made available to other municipalities wishing to implement similar programs