Pace Property Assessed Clean Energy, commonly known as PACE, is a financing program that allows property owners to fund energy efficiency, renewable energy, and water conservation upgrades to their properties. PACE programs are designed to help property owners reduce their energy consumption, lower utility costs, and increase property values.
How Does PACE Work?
PACE financing is based on the concept of a special assessment district, where property owners can voluntarily opt into the program. Once in the program, property owners can borrow money to finance qualifying energy efficiency and renewable energy projects. The loan is repaid through a special assessment on the property tax bill over a fixed term, typically up to 20 years.
Benefits of PACE
One of the primary benefits of PACE financing is that it enables property owners to make energy efficiency improvements with no upfront costs. This can be particularly beneficial for commercial property owners who may not have the capital to invest in energy upgrades. Additionally, PACE financing is tied to the property, not the individual, so if the property is sold, the new owner assumes responsibility for the remaining payments.
Qualifying Projects
PACE financing can be used for a variety of energy efficiency and renewable energy projects, including but not limited to:
- Insulation
- Windows and doors
- Solar panels
- Geothermal heating and cooling systems
- LED lighting
- Energy-efficient HVAC systems
Is PACE Right for You?
Before participating in a PACE program, property owners should carefully consider their individual circumstances and financial goals. While PACE financing can offer many benefits, it is important to understand the terms of the loan, including interest rates and repayment schedules. Property owners should also consider the potential impact on property values and the ability to recoup the investment through energy savings.
In conclusion, PACE financing is a valuable tool for property owners looking to make energy efficiency improvements to their properties. By providing access to affordable financing for qualifying projects, PACE programs help property owners reduce energy consumption, lower utility costs, and increase property values. If you are considering energy efficiency upgrades for your property, PACE may be worth exploring as a financing option.
