What is PACE Financing?
Property Assessed Clean Energy (PACE) financing is a way to finance energy efficiency, renewable energy systems, and water conservation upgrades to buildings. Residential, commercial, industrial, agricultural, and non-profit organizations can qualify for PACE financing for building energy projects. PACE can help with the costs of solar panels, lighting upgrades, heating and cooling systems, insulation, water pumps, and other property improvements.
How PACE Financing Adds Value
PACE helps property owners across the United States to save money and increase the value of their building. One hundred percent of a project’s cost is paid for by PACE and repaid for up to 20 years with an assessment added to the property’s tax bill. Financing through PACE stays with the property if sold, and it is simple to share with tenants. PACE is sponsored by state and local governments to promote economic development, protect the environment, and create jobs.
Benefits of PACE Financing
PACE helps property owners lower their energy costs, thus saving them money. The long-term payback helps the PACE funded projects be cash flow positive right away. Energy and water projects funded by PACE help the environment. Installing energy efficient upgrades and renewable energy systems takes the place of fossil fuels and work to eliminate greenhouse gas emissions. PACE projects also help to create local jobs and economic activity.
How does PACE Financing work?
Individual states have laws that allow local governments to offer PACE to property owners. PACE has qualified providers that help these property owners decide if the energy efficiency projects are good for their business. The qualifying of projects, processing of applications, and financing is arranged by PACE. Once the funds are paid out, the property will receive an assessment on their tax bill.
Is Your Property Eligible for Pace Financing?
Most buildings are eligible for PACE financing. Private residences, hotel, office buildings, retail properties, warehouses, non-profit properties, and many others can take advantage of PACE.
Why use PACE Financing?
PACE will cover 100% of your upfront financing, and provide long-term financing. It will also stay with the property if the building is sold. It increases the value of the property as well as lowering utility bills. To find out if the state you live in has a PACE program, visit www.pacenow.org.