Covers lots of project types including new heating and cooling systems, lighting improvements, solar panels, combined heat and power systems, new roofs, water pumps, insulation, and more for almost any property – homes, commercial, industrial, non-profit, and agricultural.
Benchmarking, energy audits and evaluations are used to ensure quality project choices.
100% upfront, off balance sheet, non-recourse, non-accelerating finance.
Allows projects to be cash flow positive from the outset because the financing offered is relatively low cost and payable over an extended period of time (up to 30 years); this means that the energy savings can more than offset the property tax increase.
Increases building value via capital improvements and lower operating costs.
The repayment obligation for the PACE assessment stays with the property if it is sold.
For projects like solar panels that have tax incentives, non-profits and others that cannot use tax incentives can choose a PACE financed, pre-paid power purchase agreement.
PACE assessments qualify as an operating expense under most triple-net lease agreements. This means payments (as well as the energy savings) can be passed along to tenants.
Security of the tax lien allows building owners, who often lack investment grade credit ratings, to use third party financing for energy/water upgrades without need for personal guarantees.
PACE preserves capital and available credit lines for core business investments.
Improved attractiveness of building, including better indoor air quality/comfort for tenants.
State and local governments sponsor/support PACE financing to create jobs, promote economic development, and protect the environment.