PACE Renewable Energy Financing ProgramsApr 25, 2014
If you’re a property owner who is interested in adopting clean energy, but are concerned that up-front costs would make your project unattainable, then the PACE renewable energy financing program could be just what you’re looking for.
With no up-front costs, PACE financing allows property owners to fund energy efficiency, water efficiency, and renewable energy projects. PACE is an attractive financing option for those who think they can’t afford services like ours because it provides 100% financing with no out of pocket costs. The financing can be paid back, over time, through the existing property tax bill as a voluntary property tax assessment.
100% financing is coupled with amortized repayment over 20 years to help property owners adopt clean energy solutions. The 20 year amortized repayment means that your utility savings could very well exceed the amount of your low monthly payments! Additionally, property owners don’t need to worry about recouping costs if they decide to sell before the loan is repaid because the loan is tied to the property, not the individual property owner, so the loan may be transferred upon sale or refinancing.
PACE offers property owners a number of distinct advantages, including:
- Off-balance sheet accounting
- Low up-front investment
- Immediate positive cash-flow
- Long-term financing
- Ability to pass payments through to tenants
- PACE financing stays with the property upon sale
- Low interest rates
- Greater long-term property value
PACE can be used by residential, commercial, and municipal property owners who have at lease some equity in their property and haven’t been delinquent on their property tax and mortgage payments. However, in some states or counties PACE can only be applied to commercial properties. In general, the specific PACE financier will determine eligibility, but it should be noted that PACE is a relatively new program so is not available everywhere yet. The best way to determine if you are eligible is to contact the individual PACE provider directly.
You may be interested in these other posts:
- Where are PACE Energy Programs Available?
- Energy Star is for buildings, too!
- Growth in number of Energy Star certified facilities [infographic]
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