What is PACE?
PACE (Property Assessed Clean Energy) is an off balance sheet, self-liquidating debt financing vehicle that allows property owners to make energy improvements with little to no capital investment.
Under PACE, the property is the loan qualifier, and when the property is sold, the PACE debt remains with the property, unlike traditional loans that require full repayment at time of sale. PACE is a simple and effective way to finance energy efficiency, renewable energy, and water conservation upgrades to commercial buildings. Each PACE district has different qualifying measures including, but not limited to HVAC, roofs, lighting, water fixtures, solar arrays and more (request comprehensive lists for your city and state).
Property owners across the US are using PACE to make necessary mechanical improvements to their facilities without capital outlay and loans that impact operating statements. Even better for owners is that since the debt is paid for with the energy savings, property owners are now motivated to make improvements that under traditional financing gave full benefits to tenants. PACE covers 100% of a project’s costs and can be amortized over up to 20 years, creating positive cash flow on day one. PACE is endorsed by state and local governments as this financing vehicle creates jobs, promotes economic development, and protects the environment.
PACE was named one of the top 20 “world-changing” ideas by Scientific American magazine