PACE (Property Assessed Clean Energy) is a simple and effective way to finance energy efficiency, renewable energy, and water conservation upgrades to buildings.
It can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any property – homes, commercial, industrial, non-profit, and agricultural.
Property owners across the US are using PACE because it saves them money and makes their buildings more valuable. PACE pays for 100% of a project’s costs and is repaid for up to 20 years with an assessment added to the property’s tax bill.
PACE financing stays with the building upon sale and is easy to share with tenants. State and local governments sponsor PACE financing to create jobs, promote economic development, and protect the environment.
Nearly half the energy we consume, and three quarters of the electricity we generate in the United States is used to heat, cool, light, and otherwise operate our buildings. Most of this energy is created by burning fossil fuel, so reducing its consumption in a meaningful way will depend on reducing energy use in buildings.
PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings. Its financing solves the upfront cost barrier by providing 100% financing for project costs.
Long term repayment of up to 20 years makes longer payback projects immediately cash flow positive and buildings more valuable. For contractors, PACE makes it easier to close a larger sale.
Benefits of PACE include:
- Saving Money
- Property owners are more focused today than ever before on energy and water conservation
- PACE helps them save money by lowering energy costs
- Long term payback makes PACE funded projects immediately cash flow positive
- Creating Local Jobs
- PACE funded projects create more jobs and economic activity
- According to the 2011 study by ECONorthwest, every $1 million in project spending results in 15 new jobs and $2.5M in economic output
- Helping the Environment
- PACE helps communities achieve important energy and water conservation goals
- Efficiency projects upgrade old equipment which reduces energy use, while renewable replace fossil fuels and reduce greenhouse gas emissions
Almost any building is eligible for PACE financing, including homes, offices, hotels, restaurants, shopping centers and other retail properties, non-profits, warehouses, garages, etc. Energy efficiency and energy generation improvements and, in some states, water conservation and hurricane hardening, all qualify for PACE financing.