Local Option - Property Assessed Clean Energy

January 21, 2024


Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing, and for a comprehensive list of all PACE programs across the country.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Maine has authorized certain local governments to establish such programs, as described below. 

Maine signed PACE legislation into law in April 2010, authorizing municipalities to establish a loan program to provide financing for clean energy improvements to property owners via local ordinance. The legislation authorizes municipalities to enter into PACE agreements with property owners, provide financing, and collect PACE assessments to repay the loans. Municipalities will be able to use federal grants or other "funds available for this purpose" to establish PACE programs.

Efficiency Maine offers a variety of home energy loans to help residents pay for energy upgrades. Maine homeowners can borrow as much as $7,500 over up to 15 years with no fees and interest rates as low as 5.99% APR.


  • Homeowners of any income (businesses are not eligible)
  • Borrower must be a Maine resident
  • Minimum credit score depending on the loan type
  • Maximum debt-to-income ratio depending on the loan type
  • No recent bankruptcies, foreclosures, or repossessions, depending on the loan type

A list of PACE eligible townships in Maine is available here. (Updated: Decemeber 2022)

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Maine
Incentive Type: PACE Financing
Web Site: http://www.efficiencymaine.com/at-home/energy-loans/
Administrator: Programs administered locally or by Efficiency Maine Trust (determined locally)
Start Date: 04/01/2010
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Space Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Geothermal Heat Pumps
  • Landfill Gas
  • Clothes Washers
  • Refrigerators/Freezers
  • Dehumidifiers
  • Ceiling Fan
  • Water Heaters
  • Lighting
  • Lighting Controls/Sensors
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Programmable Thermostats
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Other EE
  • Yes; specific technologies not identified
  • Wind (Small)
  • Geothermal Direct-Use
  • LED Lighting
Terms: Residential PACE Loan Maximum: $7,500
Interest Rate Minimum: 5.99%
Credit Score Minimum: 580


Name: 35-A MRSA §10151 et seq.
Date Enacted: 04/01/2010
Effective Date: 04/01/2010


Name: Efficiency Maine
Address: 168 Capitol Street, Suite 1
Augusta ME 04330-6856
Phone: (866) 376-2463
Email: info@efficiencymaine.com

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.