PACE, which stands for Property Assessed Clean Energy, is a simple and effective mechanism for financing energy-efficiency retrofits and renewable energy upgrades that might not otherwise be affordable for commercial, residential, industrial, and agricultural buildings. PACE financing overcomes the upfront cost barrier these upgrades can pose by providing 100% of the financing for such projects.
The financing is paid back via property tax assessments that can stretch as long as 20 years. In most instances, the related energy savings more than pay for the assessment. Through the use of innovative PACE funding, new energy-efficient heating and cooling systems, insulation, solar and lighting improvements can be immediately rendered cash flow positive.
PACE funding has soared, as owners recognize the opportunity to increase their bottom line by reducing energy costs, to enhance the value of their property and do their part to offset greenhouse gas emissions. Since three quarters of the electricity generated in America is used to heat, cool, illuminate, and otherwise operate buildings, it’s not surprising that Scientific American magazine named PACE one of 20 “world changing” ideas.