Property Assessed Clean Energy (PACE) is an innovative financing tool that helps commercial building owners fund energy efficiency and renewable energy projects. It offers long-term, fixed-rate financing, covering up to 100% of project costs that are a permanent part of a property with no cash up-front from the owner.
Energy Efficiency Improvements
Cost-effective renovation or retrofit of a building that reduces energy consumption, e.g.:
• Window and door replacements
• Permanent lighting
• Air sealing
• Insulation at walls and roofs
• Heating and cooling system upgrades
• Similar improvement
Renewable Energy Systems
Any practicable installation of a system that
generates electric or thermal energy for use primarily onsite, e.g.:
• Solar thermal and solar PV
• Small wind
• Anaerobic digester gas systems
• Fuel cell technologies
• Air and ground source heat pumps
• Energy storage systems
PACE programs are first authorized by state law and then activated by local governments, with programs currently operating in 24 states and Washington, D.C. Commercial PACE makes up the vast majority of PACE programs and has distributed over $2 billion nationally through 2019.
Unlike traditional financing, PACE loans are repaid through a charge on the property tax bill. Loans are attached to the property and automatically transfer to a new owner when a property is sold, which means owners only pay for the energy savings they receive. PACE loans have priority over other loans and don’t accelerate if a building owner defaults. They also tend to have lower interest rates than other loans, except mortgages.
Benefits of PACE programs can include:
- Covers 100% of energy upgrade costs with no cash upfront
- Provides long-term fixed-rate financing
- Allows for retroactive financing up to three years after improvements are completed
- Can be transferred if the building is sold
- Can finance other project costs needed for installation, like asbestos and lead mitigation of roof upgrades
- Drives energy savings and increases property value
You can learn more about the state-specific PACE programs here
Building Assure has developed a solution that is designed with the small building owner in mind. Our low-cost solution provides all the necessary data to monitor energy consumption and waste, air quality, thermal comfort (temperature and humidity), water leak detection, equipment maintenance, and service quality (was the service conducted, and did it achieve the desired results). All while providing full transparency to your tenants and service contractors.
To learn more contact us at email@example.com