PACE financing is an innovative, off-balance sheet approach to financing energy efficiency improvement projects
Key Advantages
- No upfront capital required
- 100% off-balance sheet financing
- Financing through Property Tax Assessment
- Long-term financing, typically 10 – 20 years
- Guaranteed energy savings for projects greater than $250K
- Cash Flow positive from day one
- PACE financing “runs with the land”
What is PACE?
PACE (Property Assessed Clean Energy) is an innovative way for owners of industrial, commercial, non-profit and multi-family properties to finance 100% of the costs of energy efficiency upgrades, on-site renewable energy projects, and water conservation measures.
PACE financing allows a property owner to use the property tax mechanism to finance energy improvement projects. The property owner voluntarily takes on a Special Assessment that is paid off as part of the property tax bill.
Which Projects Qualify for PACE?
This special form of financing is allowed for projects that increase energy or water efficiency or that add renewable energy generating capability. The only exclusions are incinerators and digesters.
Examples of PACE projects
- HVAC systems including boilers and chillers
- Energy control systems
- Solar, wind & combined heat and power systems
- Geothermal and biomass systems
- Building envelope improvements
- Lighting
- Water usage improvements
- Manufacturing process improvements
- High-speed doors
- Compressed air systems
Where Has PACE Been Adopted?
Legislation enabling PACE is active in 33 states plus DC. Launched and operating PACE programs are available in 19 states plus DC.
Find out if PACE is available in your state.
If your state, county or municipality has not yet adopted PACE, we can work with our PACE partners to get your project approved.
Want to Learn More?
To find out more about PACE financing and to see if your energy efficiency project qualifies, please contact Climate Technologies.
