The Subprime Solar Trap for Low-Income Homeowners
Predatory deals from the financial crisis are back—just in time for the climate crisis.
Some of them thought they were enrolling in a free government program to make their homes more energy-efficient. Others were promised the energy savings from their renovations would quickly offset the cost, only to end up with solar panels that didn’t work or were too few in number to make much of a difference. Some were signed up for projects that should never have been eligible for the financing to begin with, such as converting their garages to rental units. One answered a robocall about eliminating their electricity bill and wound up with an inoperable solar array and more than $20,000 of debt.
All of these homeowners were sold on a form of financing called property assessed clean energy, or PACE, which leverages the taxing authority of local governments to cover the high upfront cost of a climate-friendly home renovation.