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.
PACE (Property Assessed Clean Energy) is a simple and effective way to finance energy efficiency, renewable energy, hurricane resistant and water conservation upgrades to buildings. PACE can pay for energy efficient windows and doors, new heating and cooling systems, roofs, hurricane shutters, generators, solar panels, water pumps, insulation, seawalls and more for almost any property – homes, commercial, industrial, non-profit, and agricultural.
Property owners across the US are using PACE because it lowers utility bills and may make their buildings more valuable. PACE pays for 100% of a project’s costs and is repaid for up to 20 years with an assessment added to the property’s tax bill. PACE financing may stay with the building upon sale and is easy to share with tenants. State and local governments sponsor PACE financing to create jobs, promote economic development, and protect the environment.
HOW DOES IT WORK?
PACE is a national initiative, but programs are established locally and tailored to meet regional market needs. State legislation is passed that authorizes municipalities to establish PACE programs, and local governments have developed a variety of program models that have been successfully implemented. Regardless of model, there are several keystones that hold true for every PACE program.
WHY IS IT SO POPULAR?
Property owners love PACE because they can fund projects with no out-of-pocket costs. Since PACE nancing terms extend to 20 years, it’s possible to undertake deep, comprehensive retro fits 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.
Momentum is building across the U.S. for commercial PACE programs that drive energy efficiency, renewable energy, and in some places, water conservation measures. Real estate owners choose PACE financing because it:
Serving the following counties Hillsborough PACE, Hernando PACE and Pasco PACE. Coming soon Polk PACE, Pinellas PACE, Manatee PACE and Sarasota PACE.
Robert Anderson - Owner