How PACE Financing Policy Works
Property Assessed Clean Energy (PACE) uniquely breaks down long standing barriers to energy efficiency in the private sector marketplace. PACE legislation allows building improvements that result in utility savings to be funded by private capital and repaid via a long-term tax assessment. Tax assessments for the public good have been used for over 200 years to fund such things as firehouses, sidewalks, and sewers. In the last few years, over 30 states have placed PACE legislation with 16 & DC having active programs that allow PACE funded building improvements. As of November 2016, over 750 PACE projects have been completed in the commercial sector.
PACE assessments by definition have quantifiable savings and the result is increased building value, lower operating expenses and a better building for tenants which makes it a better asset for both building owners and mortgage lenders.
Here's how the funding repayment works: