Property Assessed Clean Energy (PACE) is a financing mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy and water conservation projects. PACE financing is repaid as an assessment on the property’s regular tax bill, and is processed the same way as other local public benefit assessments (sidewalks, sewers) have been for decades. Depending on local legislation, PACE can be used for commercial and nonprofit properties.
PACE financing allows commercial real estate (CRE) owners to fund energy and water conservation projects without affecting the owner’s capital resources, operating budgets or borrowing capacityPACE financing covers 100% of the project cost, including both hard and soft costsPACE financing is low cost and payable over an extended period (up to 25 years), allowing the annual energy savings to More than offset the annual PACE assessment Decrease operating costs Monetize energy savings PACE financing is secured by a special assessment lien on the property, with little or no impact in the owner’s borrowing capacityOn sale of the property, the PACE assessment follows title. Successive owners continue payment of the assessment while enjoying the continuing benefits of energy efficiencies.PACE is voluntary for all parties involvedPACE can cover 100% of a project’s hard and soft costs.Long financing terms up to 25 yearsCan be combined with utility, local and federal incentive programs.Energy projects are permanently affixed to a property.The PACE assessment is filed with the local municipality as a lien on the property.