Securitization of Renewable Energy Loans

May 21, 2012
Renewable energy sources have increasingly become a focal point of U.S. regulatory and financial institutions as well as trade associations and legislatures. One main source of interest in this regard is programs that have been established by local and state governments to encourage homeowners to become more energy efficient through the use of Property Assessed Clean Energy (PACE) loans. PACE loan programs are designed to make it cheaper for homeowners to install solar panels or other energy improvements in their homes. This Dechert OnPoint discusses some of the considerations that should be taken into account when securitizing PACE loans and the industry-related discourse regarding these issues.