Company: Renovate America
Source: Greentech Media
PACE financing for homes is expanding rapidly, with residential loans eclipsing commercial projects in California.
Renovate America just collected a $90 million equity investment from many of the same VC investors that backed solar installer SolarCity. Investors in the property-assessed clean energy (PACE) financing firm include DFJ Growth, Silver Lake Kraftwerk, RockPort Capital Partners, Valor Equity Partners, DB Masdar, and 400 Capital Management. According to the WSJ, this round, “valued the company at north of $500 million, according to a person familiar with the situation.” The company has raised a total of more than $175 million in equity financing.
Renovate America partners with local governments and businesses to finance home efficiency, energy and water improvements. Homeowners pay the loans back through a line item on the home’s property tax bill, which lowers the risk for both lenders and owners and can potentially open up a far larger swath of the energy-efficiency market. Last month, President Obama’s White House and the Federal Housing Administration established a new PACE guidance aiming to “remove existing barriers and accelerate the use of PACE financing for single-family housing.”