What are the agreements involved in CollectivePACE?
There are two agreements that are part of CollectivePACE. The first agreement is the PACE loan agreement which is entered into by you and Greenworks Lending. The second agreement is the service contract, also referred to as the Solar Power Agreement (SPA), which is entered into by you and CollectiveSun. The installation agreement is a separate agreement between CollectiveSun and the solar installer you have selected.
If I use CollectivePACE, who owns the solar panels? Is this a lease or PPA? What do I get as the host nonprofit?
It is a service contract where CollectiveSun owns, operates and maintains the equipment. You receive all of the solar electricity output for no additional cost. At the end of six years, you have the option to assume ownership for no additional cost on the service contract (described in more detail below).
Who is responsible for operating and maintaining the system?
CollectiveSun is responsible for all aspects of operations and maintenance. In addition, if the system were to stop performing, the IRS could take back the tax benefits. CollectiveSun has a significant financial incentive to ensure proper system performance. As such, our interests are very much in alignment with yours, our nonprofit partner. After six years, you have the option to own the system for a net cost of $0 in compliance with special IRS rules, described below. Having CollectiveSun own the system for the first six years is a benefit for you because during that time CollectiveSun is taking care of all system operations and maintenance. If anything were to go wrong, it usually happens if the first year or two so when the system is transferred to you after six years you are receiving a fully vetted system.
Who gets the Renewable Energy Certificates (RECs) produced by the system? Who claims the tax benefits (ITC, Depreciation, etc)?
CollectiveSun claims the tax benefits but all other benefits belong to you (i.e. any applicable utility rebates, state rebates, renewable energy credits, etc). Of course, all of the energy is yours to keep as well.