PACE Funding Expertise

PACE (property assessed clean energy financing) is program overseen by the US Department of Energy designed to financing energy efficiency upgrades, disaster resiliency improvements, water conservation measures, or renewable energy installations in new construction or retrofits.  State legislatures regulate how PACE is implemented.  In the private sector, capital providers purchase a tax lien and provide financing for sustainable upgrades.  The term length is between 5 and 35 years.  In the public sector, PACE bonds can be issued, and the proceeds can be used for facility upgrades.  PACE programs are not loans, but rather it is a property tax special assessment and financing attached to the property.

The benefits are businesses defer upfront costs of sustainable projects and paid for by additional property tax assessments over the agreement’s term length.  Simultaneously, businesses enjoy lower energy costs.