What is PACE Financing
(Property Assessed Clean Energy)
Contact Jimi Holt for PACE project financing at email@example.com
PACE (Property Assessed Clean Energy) is a simple and effective solution to finance energy efficiency, building resiliency, renewable energy, and water conservation upgrades to commercial and industrial properties. PACE can pay for new heating and cooling systems, lighting improvements, solar systems, water pumps, insulation, and much more for almost any property – commercial, industrial, non-profit, agricultural, etc.
Propery owners across the US are using BAM and PACE financing because it saves them money and makes their buildings more valuable. PACE pays for 100% of a project’s costs and is repaid for up to 30 years with an assessment added to the property’s tax bill. PACE financing stays 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.
PACE is the Solution
PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings. PACE financing solves the upfront cost barrier by providing 100% financing for project costs. Long term repayment of up to 20 years makes longer payback projects immediately cash flow positive and buildings more valuable.
Benefits of PACE
Almost any building is eligible for PACE financing, including offices, multi-family, hotels, restaurants, shopping centers and other retail properties, non-profits, warehouses, garages, industrial, agriculture, etc.
Energy efficiency and energy generation improvements and, in some states, water conservation and hurricane hardening, all qualify for PACE financing. Some eligible improvements include: LED lighting, roofing, solar panels, insulation, HVAC (heating, ventilation, air conditioning), water conservation improvements, motors, etc.
Eligibility may vary by state and municipality.
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:
- Covers 100% up front financing, including project development costs
- Provides long-term funding and results in immediate benefit to cash flow
- Stays with the building upon sale
- Solves split incentives by passing payments to tenants
- Increases building value and marketability
- Offers a range of accounting treatments.
Contact BAM for more information: firstname.lastname@example.org, 480.580.5980