Property Assessed Clean Energy (PACE)
What is PACE?
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, nonprofit and residential properties.
How it Works
PACE is a national initiative, but programs are established locally and tailored to meet regional market needs.
PACE is voluntary for all parties involved.
PACE can cover 100% of a project’s hard and soft costs.
Long financing terms up to 20 years.
Can 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.
PACE Price Protection
Property owners love PACE because they can fund projects with no out-of-pocket costs. Since PACE financing terms extend to 20 years, comprehensive retrofits that have meaningful energy savings and a significant impact on the bottom line. The annual energy savings for a PACE project usually exceeds the annual assessment payment, so property owners are cash flow positive immediately. That means there are increased dollars that can be spent on other capital projects, budgetary expenses, or business expansion. Local governments love PACE because it’s an Economic Development initiative that lowers the cost of doing business in their community. It encourages new business owners to invest in the area, and creates jobs using the local workforce. PACE projects also have a positive impact of air quality, creating healthier, more livable neighborhoods.
Call us or search for PRO Promo Inc., we have all the tools and resources you need to get started with PACE. Check to see if your state has passed a PACE statute and if your area has an active program. If not, contact us to find out if there is a local initiative in development and we may be able to put you in touch with a working coalition. We look forward to hearing from you!
Obama Talks About PACE
Pace Across America