LAND O LAKES, Fla. — The I-Team reported how a disabled veteran who thought he was financed for a solar panel system faces foreclosure because his Florida PACE loan never came through.
Pasco County Tax Collector Mike Fasano says he’s heard from customers who had bad outcomes from these types of loans and encourages consumers to do their research before signing up for a PACE loan.
Hoping to save money on power bills, Esteban Ortiz signed a contract with Volt Solar Solutions, LLC, to put solar panels on his Lake Placid home in 2023.
Ortiz applied to finance the project through PACE Home Run Financing.
PACE program not offered in Ortiz’s County
PACE stands for Property Assessed Clean Energy.
It was a program approved by Florida legislators in which private lenders make loans for home improvement projects, which are paid back through assessments on annual property tax bills.
Since 2015, Florida’s PACE funding agency has recorded $915 million in assessments on more than 29,000 parcels.
However, PACE loans are not offered in 42 out of Florida's 67 counties.
Ortiz said there was no way he could afford the solar power system without financing.
“We didn’t have... still don’t have... $40,000 or $50,000 to pay for the system,” he said.
Ortiz thought he was approved for the loan when Volt Solar employees installed solar panels.
Under the terms outlined in his loan application, Ortiz would pay the money back over 30 years.
According to that document, he would not owe a payment until his tax bill came due in November 2024.
But months after the solar panels were installed, Ortiz learned his financing never came through.
Now, his house could be sold on the courthouse steps.
Tax collector warns homeowners
“It's very appealing. In fact, it’s too appealing,” Pasco County Tax Collector Mike Fasano says of the Florida PACE program.
“They're not gonna get it paid off. And the money that they may... I emphasize the word “may” ... save in their electric bill will never be enough to pay off that loan over the next 30 years,” Fasano said.
Ortiz estimates his solar panels are saving him about $150 a month in energy costs.
His PACE Home Run financing application shows a $41,500 loan would add $2,632 to his property tax bill.
That would add an extra $219 to his house payment each month.
According to the PACE document, Ortiz would have paid $81,715 in assessments over 30 years.
At $150 a month, it would take him 544 months... or 45 years...to save that much money.
But according to the U.S. Department of Energy, the expected lifespan of his solar panels is 20-to-30 years.
In Highlands County, where Ortiz lives, PACE loans are not available to residential customers.
Fasano requires signed disclosures for PACE loans in Pasco County, where they are allowed.
“We do it because we want to make sure they really understand what they’re getting themselves into,” Fasano says of the disclosures.
The document includes the estimated assessment amount, interest rates and other terms of the loans.
“The customer must sign it, the PACE provider must sign it. The contractor has to sign it. No work can be done by that contractor who’s contracted with a PACE provider, until we receive that,” Fasano said.
Florida PACE statement
The Florida PACE Funding Agency provides accessible financing solutions for qualifying hurricane hardening and energy efficiency improvements to property owners across Florida. As an interlocal Entity established under Florida law, Florida PACE oversees program administrators who work with homeowners to finance their projects through long-term, fixed-rate assessments added to their property tax bills. In 2024, FPFA received more than 17,000 leads statewide, reflecting the continued demand for its financing solutions. Recent survey data further underscores the program’s positive impact, with 86% of respondents rating their experience with a 4 or 5.
In 2022, the court system affirmed the Agency's authority to operate statewide without requiring approval from individual counties or cities, making this financing mechanism more widely available. The program has played a critical role in helping homeowners protect their properties and manage rising insurance costs.
Several tax collectors across the state have sought to challenge the longstanding law that requires them to collect local government assessments, a law that has been in place since the 1980s and reaffirmed by the courts in 1998. Rather than pursuing legislative changes, some tax collectors have opted not to fulfill their statutory responsibilities, including the collection of non-ad valorem assessments.
Regarding Highlands County, the local Tax Collector declined to collect valid home-saving assessments as required by statute. Consequently, funding providers who purchase the Agency's bonds, which enable the program to function and allow contractors to be paid, could not continue financing projects in the county. Contractors working with impacted homeowners were informed promptly and encouraged to assist customers in exploring alternative financing options. Contractors in this position are responsible for rescheduling and/or discontinuing work until other arrangements are made with the property owner for payment, as appropriate.
The Agency sympathizes with any homeowners who may face difficulties due to the actions of local officials that impact their ability to finance necessary property improvements. Additionally, the Agency acknowledges the frustration homeowners may experience if contractors fail to communicate financing changes effectively. When such issues are identified, the Agency takes appropriate action, including discontinuing relationships with non-compliant contractors. To note, any misrepresentation of financing eligibility must be addressed directly with the contractor under the oversight of relevant regulatory bodies. Florida PACE does not regulate licensed trade professionals; their regulation and enforcement fall under the jurisdiction of city or county authorities or the Department of Business and Professional Regulation (DBPR).
We can confirm that Volt Solar Solutions, LLC was removed as an approved contractor on January 23, 2024, but we are unable to share any additional information on the matter.
In less than two months, more than 100 people have contacted the ABC Action News I-Team, saying they are stuck waiting on unemployment benefits and are growing more desperate by the day.
