Property assessed clean energy (PACE)

What is PACE?

1. Property-Assessed Clean Energy (PACE) is a way to finance energy efficiency and renewable energy projects for new or existing buildings of commercial, industrial, nonprofit, and multihousing property owners.
2. Energy-saving projects done by the property owners receive PACE financing and are repaid as a separate item on their property tax assessment for a set period.
3. PACE financing helps overcome barriers to doing energy-related projects. It eliminates high up-front costs, reduces dependence on credit, and allows for comprehensive projects.

Project Process

• Local government establishes PACE program
• Owner completes energy audit to find savings
• PACE administrator approves financing
• Owner completes energy work
• Owner uses savings to repay assessment

Qualifications

• Owners current on mortgage and property taxes
• No federal or state liens against the property
• Must not be in bankruptcy proceeding
• Consent from current mortgage lender
• Term can't exceed useful life of equipment
• Project can't exceed 30% of appraised or assessed property value, whichever is higher