PACE Snapshot: June 2024

Morningstar DBRS’ semiannual research series, the Property Assessed Clean Energy (PACE) Snapshot, provides insights on general industry developments as well as collateral performance trends underlying our publicly rated residential PACE (R-PACE) securitizations. In addition, it highlights some of the latest trends in the commercial PACE (C-PACE) sector.

--In 2023, R- and C-PACE assessment volume reached roughly $2.8 billion, according to PACENation, an industry advocacy group. C-PACE represented most originations, accounting for approximately $2.1 billion, compared with $0.7 billion in R-PACE financings.
--PACE ABS issuance started out robust in the first quarter but has since slowed down the last several weeks, with issuance totaling roughly $362.6 million through June 7, 2024.
--Morningstar DBRS continues to see low delinquency rates across its rated R-PACE securitizations, in the 1% to 4% range, while C-PACE delinquencies and losses have also remained low.