The addition of PACE financing into the comprehensive capital stack of a new development or the enhancement of an existing facility provides short-term and long-term advantages.
Property Assessed Clean Energy (PACE) is a voluntary financing program providing long-term funding for energy efficiency, renewable energy and other qualifying improvements made to property. The PACE program allows low-cost, up-front financing to make energy improvements that can provide substantial savings year over year. The property owner has the benefit of repaying the PACE financing as an assessment on their property tax bill.
How it works
PACE is enabled by state legislation and established locally through counties and municipalities for eligible improvements to a variety of buildings, including: hotels, retail, industrial, multi-family and office buildings. We help your company navigate the PACE funding and approval process and integrate PACE with the other financing sources for your project.
Established at the state and local level after passed legislation. Counties and Municipalities establish a PACE program that fits their direct needs.
Apply for financing
Property owners voluntarily apply for PACE financing based on their project goals in order to pay for the upfront cost of desired improvements.
Once PACE financing is granted, property owners install energy improvements using funds from the lender.
Property owners have the ability to realize immediate positive cash flow with the energy savings. Repayment is made over a set time frame – usually 20 years – and is paid back as an assessment on property tax bills.
Benefits of using PACE
- Long-term fixed rate financing for up to 20 years
- Non-Recourse: no personal guarantees
- Can replace higher cost forms of capital like mezzanine debt or equity
- No principal repayment required upon sale
- Finance 100 percent of eligible costs of improvements
- Can be combined with other federal, state and local incentives
- Energy savings can make project cash flow positive
Where PACE is available
PACE legislation is currently active in 33 states nationwide.