A new study that will appear in the winter Journal of Structured Finance looks at the impact on home prices for homes in California that had Property Assessed Clean Energy Loans, or PACE Loans. These loans finance energy efficiency and renewable energy projects in residential homes, with the monthly payment appearing on the property tax of the home rather than being owed by the individual home owner. The study executive summary commented:
PACE Home Energy Renovations Recover More than 100% of Cost, while other Home Improvements Do Not Come Close to Recovering Their Investment Costs: Analysis from the RemodelMax and the National Association of Realtors has shown that investments in other home improvements such as kitchen and bathroom modeling on average recovered at resale 58-66% of their investment cost.
Read more about the study here.