PACE Snapshot: December 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 2024, we saw a decline in PACE assessment origination volume, with R- and C-PACE reaching roughly $2.45 billion, according to estimates from PACENation, an industry advocacy group. While C-PACE continued to account for the bulk of originations, roughly unchanged year over year, with an estimated $2.1 billion, R-PACE financings dropped by 46%, totaling $357.7 million this year.

-- PACE asset-backed securities issuance is also tracking somewhat lower than the prior-year level, with approximately $931.4 million in issuance through December 11, 2024.

-- We continue to see low delinquency rates across our rated R-PACE securitizations, in the 1% to 5% range, while C-PACE delinquencies and losses have also remained low.