The problem with PACE
Ortiz’s troubles started when he financed his solar panels through the Property Assessed Clean Energy (PACE) program, a government-backed initiative designed to make home improvements more accessible.
PACE offers 100% financing for energy efficiency, renewable energy, water conservation and disaster resiliency upgrades. The catch? Instead of a traditional loan, the debt is added to the homeowner’s property tax bill and repaid over time — sometimes up to 30 years.
But PACE loans come with a catch: they function as tax liens. If payments aren’t made, foreclosure can happen fast.
That’s exactly how Ortiz got trapped. Not all Florida counties participate in the PACE, and while his county allows commercial loans under the program, it doesn’t permit residential ones. Ortiz believed he was approved for full financing, but the funding never materialized because of this restriction.
Despite that, Volt Solar Solutions went ahead and installed the panels. When Ortiz couldn’t pay, the company filed a mechanic's lien against his home. Compounding the issue, the attorney who prepared the lien, Joe Falluca, is also the president of Lien Liquidators — the company now trying to foreclose Ortiz’s home.
Falluca told WFTS that the PACE program had failed to provide the financing it promised.
Suddenly, Ortiz owed thousands of dollars he couldn’t afford, and his debt quickly escalated into a foreclosure threat. Unlike missing a mortgage payment — where homeowners often have time to negotiate — tax liens move fast, leaving little room to fight back.
“I should have gotten an attorney, but not everyone has $3,000 or $4,000 on hand to pay for an attorney,” Ortiz said.
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Learn MoreAvoiding solar scams
Across the country, homeowners are lured into questionable solar financing deals with promises of lower bills, tax credits and no upfront costs. The Consumer Financial Protection Bureau (CFPB) warns that solar financing issues are rampant, with common problems including misleading claims about financial benefits and energy savings.
Another common trap is misleading loans. Some financing options, like PACE, aren’t structured like traditional loans. Because the debt is tied to the property taxes through a lien, homeowners may not realize they’re putting their house on the line.
Before signing anything, homeowners should ask, how the loan is repaid, whether it affects property taxes and if it carries foreclosure risks.
Vetting both the contractor and the financing program is just as important. Checking online reviews, consulting local consumer protection agencies and verifying a company’s standing with the Better Business Bureau (BBB) can help avoid shady deals. And if a financing offer seems too good to be true, it probably is.
Safer alternatives include home equity loans or solar-specific credit programs, which don’t automatically place a lien on the property and offer more flexibility in case of financial hardship.
Save on energy without risking your home
While solar power is a great way to reduce energy bills, homeowners should explore other cost-effective solutions.
Installing a heat pump can significantly reduce heating and cooling costs, with federal rebates to offset installation expenses. Smart thermostats and energy-efficient appliances can also lower electricity bills without long-term debt.
For those still interested in solar, explore legitimate incentive programs that don’t require risky financing arrangements. The Department of Energy’s Solar for All initiative is a good starting point, though funding freezes implemented by the Trump Administration have cast uncertainty over its future.
Electric vehicles (EVs) are also gaining traction as an alternative way to cut household energy costs, especially when paired with off-peak charging strategies. And sometimes, the simplest fixes — like sealing air leaks, upgrading insulation or switching to LED bulbs — can cut energy consumption by 30% or more without taking out a loan.
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