Property Assessed Clean Energy financing, or PACE financing, is private capital available to building projects at a low cost using utility, water, or operations energy efficiencies.

PACE is a program legislated at the state and then municipal level that allows private investments to fund energy loans for improvements to buildings through a tax assessment lasting 20 to 25 years. 

Hear more about how PACE works from PACE Equity's founder, Beau Engman:


Preliminary Funding Estimate


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:

PACE Equity Flow Chart.png

Energy Engineering: What PACE Finances








Building Insulation










Questions? Contact us to learn more about what specific building elements PACE covers.

Reaching Across All Asset Classes

These asset classes and more benefit from PACE.



PACE Equity provides unique ROI opportunities to hospitality projects and is the leader in PACE projects for the hospitality industry.

PACE Equity works on multifamily developments or renovations.


PACE Equity provides innovative solutions for multifamily development and renovations.



Cover your capex needs or office development project using PACE Equity.



Learn how PACE Equity has saved industrial owners substantial cost without anything out of their own pockets.



NNN leases? No problem! Use PACE Equity to renovate or construct your shopping center and pass costs to tenants.



PACE Equity has pioneered the use of PACE financing for new construction projects. Work with the leader in new build projects.


Why Use PACE Financing?


More Funding

Need FundingFill gaps in the capital stack with PACE Equity.  PACE funded projects are secured by a special assessment on the property, building owners can access long term, fixed rate, non-recourse low-cost capital. With this security, PACE Equity can pair with almost any kind of capital stack to provide funding when there is a gap.

Higher Cash Flow

Need Higher Cash FlowPACE improvements have an attractive ROI that result in immediate positive cash flow to the building.  With no cost out of pocket for doing renovations & addressing capex needs, this can increase your building’s value while adding higher cash flow to your pocket.

Near-Term Plan to Sell

Near -Term Plan to SellBuilding owners can take a long term view as the PACE assessment can be transferable upon sale of the property. Building owners get 100% financing of the improvements with no up-front investment or personal guarantees.

Supplement Traditional Capital

Insufficient Traditional CashflowPACE is nontraditional and is considered an addition to, not a replacement of, traditional capital loans.  Banks are often reluctant to provide financing for capex needs, requiring the owner to go into their own pocket. PACE Equity terms can go up to 20-25 years where most bank loans are limited to 3-5 year terms.

Lower Cost of Capital

Cost of Capital is Too HighEquity, mezzanine and other options can cause your net ROE  to deteriorate. PACE’s terms of repayment are significantly lower, have the potential to be passed onto tenants, and can go up to 20-25 years.

Planned Tenant Passthrough

Planned Tenant  PassthroughWith PACE Equity and energy engineering analysis, building owners can plan for tenant passthrough of costs with your project. When tenants benefit, you can benefit as well.


This 82-unit micro apartment new construction project represents an investment of $16.8M to the Sloans Lake area in Denver, CO. The PACE Equity portion of the project was approximately 16% of the total development.
Read the story here.
Download the Case Study for PACE Equity Paves the Way for Innovative New Construction Mi

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