AllianceNRG Program FAQ

F.A.Q.
AllianceNRG General
What is the Alliance NRG Program ?

The AllianceNRG Program provides up to 100% financing for energy efficiency and renewable energy products for both residential and commercial property owners.

 

 

Why is the AllianceNRG Program different then other energy loans ?
Unlike other energy loans, AllianceNRG Program offers 100% financing for energy or disaster mitigation retrofits including soft costs, the cost of the product , installation and other approved ancillary costs. The AllianceNRG Program has low-fixed interest rates and terms that match the useful life of the product or improvement up to 30 years. Repayments are made through your property taxes and in case the property is sold, the remaining assessment can be passed to the new property owner.
How is an AllianceNRG Program financing repaid ?

The AllianceNRG Program financing is repaid through your property tax bill and collected in the same manner as your regular property taxes. You will see an additional line item on your property tax bill for your scheduled payment. If you have your taxes escrowed by your mortgage lender, the bank will adjust your monthly payment to include the amount due for the AllianceNRG financing. 

 

 

 

Who is eligible for AllianceNRG Programs ?
The AllianceNRG Program is available in a number of communities in California , and  Florida  with more coming every day. Use the check eligibility button to see if the Program is available in your area. The Program is open to residential and commercial property owners who meet the eligibility requirements.
What Are the eligibility criteria for the AllianceNRG Program ?
The eligibility criteria vary slightly from state to state , but generally they include :
 
  • All mortgage related debt plus the AllianceNRG financing may not exceed 100% of the value of the property.
  • The Property Owner must be current on their mortgage at the time of the application without any delinquencies of more than 30 days in the past 12 months or since the property owner acquired the property, whichever is shorter.  
  • The Property taxes must be current with no more than one late payment or tax lien over the past 3 years. 
  • The Property must not be subject to outstanding involuntary liens such mechanics or municipal nuisance liens. 
  • The Property owner must not have declared bankruptcy in the last 7 years and must not be subject to an active bankruptcy. 
Do Trust Properties qualify for the AllianceNRG Program ?
Yes. Properties held in trust may qualify for the AllianceNRG Program subject to proper and adequate documentation, receipt of required property trust authorizations and signing of all financing documents by all trustees. Trust properties may be subject to other conditions. Please contact the Program for details.
 
Do i have to select a Program Contractor or can i use my own ?
You are welcome to select your own contractor provided the contractor is approved as a Alliance NRG through the normal contractor clearance process
Contractors
Why is AllianceNRG financing different than other construction loans ?

Unlike other construction loans, AllianceNRG financing offers 100% of the cost of the improvement including development soft costs, the cost of the product , installations and other approved ancillary costs. AllianceNRG Program offers low- fixed interest rates and financing terms up to 30 years. Repayments are made through your property taxes and in case the property is sold, the remaining assessment can be passed to the new property owner.

What is required to become an AllianceNRG Program eligible contractor ?

AllianceNRG Program eligible contractors must meet the following Minimum Requirements:

  • Possess all valid licenses, certifications and registrations (federal, state, and local) legally required to make the Qualifying Improvement(s);
  • License must be active and not on probationary status;
  • Maintain the appropriate insurance coverage for work to be performed;
  • Satisfy workers' compensation requirements; and
  • Satisfy other federal, state and local requirements associated with the Qualifying Improvement(s).

In addition, specialized improvements such as solar installation, flood mitigation or seismic retrofits may require additional certifications, licenses or training.

Please contact Contractors@AllianceNRG.com for further details.

 

How do I become an AllianceNRG Program Eligible Contractor ?

To become an Eligible Contractor :

  • Comply with the AllianceNRG Program Contractor Requirements;
  • Submit a completed AllianceNRG Program Contractor Application online or call our Contractor Center at (800) 753 5585;
  • Agree to adhere to the AllianceNRG Program Code of Conduct; and
  • Attend a Training Class or Webinar.
How does AllianceNRG support contractors in the program ?

Eligible Contractors automatically receive a listing in the online Directory that includes:

  • Contractor Name;
  • Company Name;
  • Email;
  • Business Address;
  • Phone;
  • County;
  • Company Website; and
  • Service Offerings.

In addition to the listing, Eligible Contractors are eligible to work on AllianceNRG funded projects and have access to:

  • Training on the AllianceNRG program;
  • Marketing collateral;
  • Co Branding opportunities
Are progress payments available to offset the upfront cost of materials ?
Yes. The Program allows for progress payments for commercial projects in excess of $100,000. Generally the program has a maximum of four (4) draws, unless the project exceeds $1,000,000. Then customized payment options may be available. Solar Contractors may also get approved for progress payments up to 50% of the installation costs to cover equipment purchases.
How are payments made by the AllianceNRG Program ?

Payments can be made by either check, ACH or wire. We will call to confirm instructions during the contractor acceptance process. Payments are made twice a month and Contractors should expect to receive payments no more than 14 days after final documentation is acceptance.
How quickly are payments made for completed projects ?
As soon as all the necessary documentation is provided  we can set the closing. AllianceNRG Program financing closes twice a month.
Residential
What is the AllianceNRG Program ?

 The AllianceNRG Program provides up to 100% financing for energy efficiency and renewable energy  projects.

What is PACE financing ?

PACE is an acronym for “Property Assessed Clean Energy".  A PACE program provides financing for property owners to make qualifying improvements to their businesses or homes. The financing is repaid through a non-ad valorem assessment on the property owner’s annual property tax bill.

 
How Does the AllianceNRG Program Work ?

1) Choose Your Project:

Work with an Eligible Contractor or Energy Developer to identify project(s) that are eligible for financing and that result in energy savings.

2) Apply For Financing:

The online application process is simple and AllianceNRG Ambassadors are available to help you. Completing the application does not obligate you to proceed with the project improvements. Your approval does not rely on your credit rating.

3) Install Projects and  Get Funding:

Once your application is approved, you will execute financing documents that will result in a lien placed on your property for the amount to be financed. At this point, you may begin installation and receive funding for your project.

4) Make Payments:

You will repay the financed amount as a line item on your property taxes over the course of up to 30 years. If you sell the property, the new owner may assume the property tax payments or the loan may be prepaid as a negotiated condition of sale.

 

Who is Eligible to receive an AllianceNRG Program financing ?

Each State has specific requirements however in general to be eligible property owners must:

  • Be property owner of record; and their property must be located within the local authority jurisdiction.
  • Be current on property taxes and mortgage payments; 
  • Not have filed for bankruptcy in the past 7 years; total timeframe requirement varies for each jurisdiction; 
  • Have no liens on the property other than lender debt and property taxes/special assessments for past 3 years; and 
  • Mortgage debt is not in excess of 90% of property value. 
is the property owner's credit score used to determine eligibility ?

No. This financing is dependent only on the property eligibility criteria.

How is a Program financing repaid ?

AllianceNRG Program financings are  repaid through a special non-ad valorem assessment included on the property owner’s annual property tax bill. Because this assessment “runs with the land”, the assessment is assumable by a new property owner should the property be sold.

What protections are in place for property owners during the process ?

Property owners may choose from the list of AllianceNRG Program Eligible Contractors or have their contractor apply for the Program.

The AllianceNRG Program reviews the credentials of every contractor, ensuring that each contractor is licensed and insured. In addition, the AllianceNRG Program also reviews every proposal, making sure that the proposed costs and energy savings are reasonable. All work must be permitted and inspected by a local building official. Contractors are paid only after the work has been inspected and the property owner agrees that the work has been completed.

What qualifying project or products can be financed with AllianceNRG Program ?

There are thousands of products that can be financed with the AllianceNRG Program such as :

Energy Efficiency Improvements

For example:

  • Air conditioning; 
  • Water heating; 
  • Windows and doors; 
  • Insulation and duct sealing; 
  • Lighting and controls; and 
  • Electric vehicle charging equipment.


Renewable Improvements 

For example: 

  • Solar photovoltaic systems; 
  • Solar thermal systems; 
  • Solar water heaters and attic fans; 
  • Geothermal heating and cooling; and 
  • Wind microturbines. 
Commercial
Why should I consider AllianceNRG Program financing when my bank is offering a lower interest rate?
AllianceNRG Program financing is considered a tax assessment levied by the local governmental taxing authority, (similar to a infrastructure improvement bond). The financing is self amortizing ( no balloon payment) with terms that match the useful life of the improvement. Similar to a non ad-valorem tax, the regular payments are collected along with the normal real estate taxes on your tax cycle. Because the financing is a tax it is reported similar to other line item taxes on the income statement of the property. Please consult with your tax advisor for further information on how this type of financing affects your property .
Is there a Balloon payment for my AllianceNRG Program Financing ?

No. AllianceNRG Program financings are self amortizing with terms up to 30 years . The term must match the weighted useful life of the improvement. A table of the  Eligible Improvements can be found on  the Products Page .
Is there a due on sale clause in the AllianceNRG Program?
No. AllianceNRG Program financings are considered voluntary tax assessments and as such are part of the property taxes. If the property is sold the tax will be the responsibility of the new owner similar to other taxes.
What is the process for approving a buyer of my property ?

Upon a sale or transfer of ownership of your property,  the AllianceNRG Program Assessment transfers to the new buyer similar to a tax. There are no fees or approvals required.
Are there default acceleration clauses?

Because AllianceNRG Program financing is considered a Tax Assessment, the collection process will follow the normal tax lien process for each jurisdiction. The assessment is superior to the mortgage in credit standing and would be considered a regular tax lien with all the same rights and remedies of a tax lien in bankruptcy court. 
We recently completed some basic energy and water efficiency upgrades to our property. Can i still finance them?

The AllianceNRG Program is available only for improvements to be made to a property. Therefore, previously completed improvements are not eligible for financing.

My company is building a new facility. Can the AllianceNRG Program be used to finance a portion of the construction?

New construction is not typically eligible for the AllianceNRG Program. However, if design changes can improve the energy and water use efficiency of a property, then these upgrades may be eligible for financing. Please consult with an  by calling (855) 431 4400.

I already have one AllianceNRG Program financing on my building. Can i use the program again ?
Yes. Although an existing PACE financing cannot be refinanced, it is permissible for a property to have multiple PACE Assessments so long as the combined amount of all PACE Assessments meet the parameters for the PACE Program.
Seismic / Soft Story
Why is AllianceNRG Program different then other property construction loans ?

Unlike other construction loans, AllianceNRG Program offers 100% of the Seismic retrofit including development and soft costs, the cost of the product , installations and other approved ancillary costs. AllianceNRG Program offers low- fixed interest rates , financing terms up to 30 years for Seismic Retrofits. Repayments are made through your property taxes and in case the property is sold, the remaining assessment can be passed to the new property owner

Is the AllianceNRG Program limited to soft story retrofits ?
The AllianceNRG Program is not limited to the soft story portion of your building. You can finance resiliency improvements up to the maximum financeable amount under the AllianceNRG Program guidelines (see commercial guidelines for limitations and restrictions).
Does the Program cover non structural aspects of the seismic retrofit ?

The AllianceNRG Program will finance 100% of the seismic retrofit project, not just the structural steel or other hardening measure but all related work for the design. For example, if an electrical  panel must be moved in order to properly locate a steel beam, the entire cost of the electrical work and new materials would be covered.

Can the AllianceNRG Program finance my condo seismic retrofit ?

The AllianceNRG Program can be used to finance a condo association retrofit. AllianceNRG will need to review the HOA agreement as well as the CC&R (Conditions, Covenants and Restrictions) of the association to determine eligibility. Other conditions may apply. Please contact the AllianceNRG Program for details.   

I filled out the ESIP application. Will i need to fill out another for the AllianceNRG Program ?

The AllianceNRG Program will need some additional information to determine eligibility. The AllianceNRG Program application is available online and our Ambassadors are available to assist you with any questions.

What is the interest rate for the program ?

The interest rates for the AllianceNRG Program fluctuate with the market. Please contact an AllianceNRG Program Ambassador for the most current rates

Flood - Wind Mitigation
Why is the AllianceNRG Program different than other property construction loans ?

Unlike other construction loans, the AllianceNRG Program finances up to 100% of the risk mitigation retrofit including development and soft costs, the cost of the product installations and other approved ancillary costs. The AllianceNRG Program offers low-fixed interest rates and  financing  terms up to 30 years for Flood and Wind Mitigation Retrofits. Repayments are made through your property taxes and in case the property is sold, the remaining assessment can be passed to the new property owner.

What Kind of Wind mitigation products does AllianceNRG Program finance ?

Alliance NRG can provide 100% financing on all types of wind resistance improvements, including, but not limited to:

  • Strengthening the roof deck attachment;
  • Creating a secondary water barrier to prevent water intrusion;
  • Installing storm shutters; or
  • Reinforcing roof-to-wall connections.
Municipalities
What Are the Benefits of the AllianceNRG Program to Local Governments ?

The AllianceNRG Program was formed by local governments for local governments with the special purpose to provide long-term financing for structural improvements that encourage renewable generation, energy efficiency and disaster resilience (wind, flood and seismic resiliency upgrades are available in certain areas or pending legislation). The AllianceNRG Program is an independent funding source, and any municipality may subscribe by resolution or ordinance to make this financing opportunity available for its community.

Is the AllianceNRG Program Statewide or just Local ?
The AllianceNRG Program provides the strength and financial stability of a statewide statutory program, yet supports home rule by allowing each municipality to decide whether to invite the Program in to provide PACE financing.
 
* As a local government, the The AllianceNRG Program removes both the administrative burden and liability from participating municipalities. Plus, its activities are fully transparent, subject to public records and government-in-the-sunshine requirements.
 
* Municipalities can legally and prudently opt in to the  AllianceNRG Program without an RFP, allowing job creation to begin immediately.
Why Should a Local Governments Opt-In to the AllianceNRG Program?
The AllianceNRG Program was formed for local governments with the special purpose to provide long-term financing for structural improvements that encourage renewable generation, energy efficiency and disaster resilience (seismic, flood and wind in certain areas pending legislation). The AllianceNRG Program is an independent funding source and any local government may subscribe by ordinance or resolution to make this financing opportunity available for its community.
How Does The AllianceNRG Program Provide Jobs or Economic Growth ?
The PACE program has the potential to stimulate significant local economic activity and put contractors back to work. PACE creates more work for contractors. Those contractors who participate in PACE across the country have realized increases in their sales and have often expanded their workforce to handle the extra demand for their services. PACE will also increase revenues for local building departments issuing building permits.
 
The American Council for an Energy-Efficient Economy (ACEEE) estimates that 17 direct jobs are created for every $1 million financed by the AllianceNRG Program as well as creates two indirect jobs (see http://aceee.org/fact-sheet/deeper-methonology). This will directly affect the building trades across the state, putting many skilled unemployed and underemployed contractors back to work.
How Does The AllianceNRG Program Help Property Owners?
AllianceNRG Program  gives Property Owners access to long-term financing for up to 100% of all costs associated with energy efficiency, renewable generation and disaster resilience (wind, flood and seismic in certain areas). Payments for these improvements can be structured to generate positive cash flow to the Property Owner because the cost savings derived from them exceeds the amount of the  assessment payment. Property Owners may also achieve savings by reducing insurance premiums for disaster resilience improvements (available only in certain areas or pending changes in current legislation).
What Are The Costs To a Local Government?
All costs of administration are carefully borne by present (and future) program users not the local government general funds. The benefits of the program require no staff time from any subscribing local government for implementation. Special districts are not required nor are the costs associated with setting up a district. The subscribing local governments may assist in promoting the program to generate economic stimulus and jobs creation to meet their local needs but it is not required.
What Is The Subscription Process ?
Local Governments can legally and opt into the AllianceNRG Program through the sponsoring statewide Joint Powers authority or local improvement authority without an RFP, allowing job creation to begin immediately.
Is The AllianceNRG Program Available Statewide?
Uniformity and scalability found in the AllianceNRG Program approach will serve to make this program more widely available and attractive to property owners and employ more contractors using the careful eligibility guidelines laid out by the State Legislature.
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