Property Assessed Clean Energy (PACE)
An intelligent way to fund performance upgrades in commercial buildings.
- Funding for up to 100% of installed project costs
- Lower financing rates than other products in the market
- Longer financing terms than would otherwise be possible
- Enable projects to be cash flow positive in year one
- May allow for favorable accounting treatment
- Allows for equitable sharing of costs and savings with current tenants and future owners
PACE helps property owners fund energy efficiency upgrades, water conservation retrofits, and on-site clean power generation projects. Under GreenFinanceSF’s open-market financing model, property owners can negotiate project-specific financing terms with the lender(s) of their choice, and repay the cost of the upgrade over time through a voluntary special tax on the property tax bill. PACE can be used to fund a range of building performance upgrades, from high-efficiency lighting and HVAC retrofits, to advanced controls systems, to installations of fuel cells and solar photovoltaic power generation.
And because PACE financing is fully secured through an opt-in Mello-Roos special tax, capital providers have the security to offer financing at lower rates and over longer periods of time than has been possible until now. This combination of lower rates and longer terms greatly improves the economics of deeper energy efficiency upgrades and on-site power generation projects, and allows for positive cash-flow from day one.
Participating in PACE is completely voluntary. The program facilitates long term funding from private capital markets at low cost and requires no subsidies. PACE increases property values by making buildings less expensive to operate and enjoys broad-based support nationwide. PACE enabling legislation has been adopted by 24 states, and there are dozens of programs in operation and in development around the country today.
- Program Overview
- Program Overview