A bill that would establish a program to finance renewable energy systems through issuance of bonds cleared the Senate Budget Committee today.
The “New Jersey Property Assessment Clean Energy (NJ PACE) Municipal Financing Program,” which would be created under S1406, would provide financing to municipalities by the New Jersey Economic Development Authority, and would authorize the issuance of municipal bonds and county improvement authority bonds, to facilitate the purchase of renewable energy systems or energy efficiency improvements by individual property owners.
In order to facilitate the repayment of the loan, the bill authorizes municipalities to impose a special assessment on property. The loan for the purchase of the renewable energy systems and energy efficiency improvements would be secured by the special assessment on the improved property. Payment on the loaned funds would be collected quarterly by the municipality. In the case of improvements that include renewable energy systems, any renewable energy credits may be assigned by the property owner to repay the loan.