City of Palm Desert - Energy Independence Program (California)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Palm Desert, California

Name City of Palm Desert - Energy Independence Program
Incentive Type PACE Financing
Applicable Sector Commercial, Industrial, Residential, Agricultural
Eligible Technologies Central Air conditioners, Windows, Doors, Solar Water Heat, Solar Space Heat, Photovoltaics
Active Incentive Yes

Implementing Sector Local
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs

Terms Minimum loan amount: 5,000

Maximum loan amount: 100,000
Loans are repaid against property taxes over a maximum of 20 years. Interest rate will not exceed 10%.

Program Administrator Palm Desert
Date added to DSIRE 2008-09-27
Last DSIRE Review 2012-08-08

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Note: The Federal Housing Financing Agency (FHFA) issued a statement in July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local PACE programs have been suspended until further clarification is provided. After temporarily suspending their program, Palm Desert reinstated it in August 2010, but with a new requirement. Property owners who wish to participate in this program now must sign an additional disclosure statement, which describes the FHFA's concerns and confirms that the property owner understands the potential risks if they choose to participate in this program.

The City of Palm Desert worked with the California Legislature to pass AB 811, which gave Palm Desert the authority to enact their Energy Independence Program (EIP). The program allows property owners in Palm Desert to borrow money from the city for energy projects at their home or facility, and to repay those loans through increased property taxes. The program was started using $2.5 million from the city's general fund. All funds for phases 1, 2 and 3 of the program have been allocated. On February 8, 2010, Palm Desert launched the newest funding round with $6 million. Half of the amount will be reserved for efficiency projects, with the other half dedicated to solar projects. All EIP loans $60,000 and higher must be approved by the city manager.

EIP loans do not require a down payment and the interest rate initially will not exceed 10%. Loans are primarily intended to fund solar installations and a wide range of efficiency projects in existing buildings, but are also available for owners of new homes and businesses that wish to add energy improvements after they take title to the property. The city's Office of Energy Management administers the program and will provide energy checks at interested owners' properties. The city staff member will identify and review with the property owner all potential energy improvements, their estimated costs and their estimated energy savings.

Incentive Contact

Contact Name Energy Independence Program
Department Palm Desert
Division Office of Energy Management
Address 73-710 Fred Waring Drive
Address 2 Suite 200 A
Place Palm Desert, California
Zip/Postal Code 92260
Phone (760) 837-0287


Authorities (Please contact the if there are any file problems.)

Authority 1: City Council Resolution 08-89

Date Enacted 2008-08-28

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"