PACE Finances Energy Upgrades
Established in California in 2008, the Property Assessed Clean Energy (PACE) program is now available in 31 states. PACE is a proven alternative to debt financing, which funds cost-effective investments that increase a property’s energy efficiency, use of renewable energy and value.
Property owners across the United States have used PACE programs to finance energy measures like efficient HVAC units and LED lighting systems, as well as renewable technologies like solar arrays. And, since PACE is a private-sector financing program, property owners can still take advantage of other eligible state and federal incentives.
Market-leading building owners like Simon Property Group and Prologis have utilized PACE to cut energy costs, increase net operating income, and enhance property values. The reason? PACE financing requires no upfront investment or borrower collateral.
PACE is now available in major mid-Atlantic markets. The District of Columbia was the first in the region to set up a PACE program. In Maryland, Anne Arundel, Howard, Montgomery, Queen Anne's, and Garrett counties have already enacted local PACE ordinances, meaning that approximately 1/3 of Maryland's population lives in a PACE-enabled county. Virginia is aggressively working towards implementing PACE programs across the Commonwealth, with legislation in Arlington coming soon.
PACE programs have proven to be an effective project-financing tool, because:
- Property owners incur no upfront debt for financing improvements.
- The PACE repayment mechanism is simple: a voluntary surcharge on a tax assessment.
- The PACE obligation attaches to the property, not the property owner.
PACE Programs Benefit Local Communities
By making buildings more efficient, PACE programs create local, clean-energy jobs and stimulate deferred, but beneficial investments in a the real estate sector, all of which enhance the value of a community.
The program, administered by local government, aligns with government as well as corporate sustainability goals.
PACE is available for commercial properties, nonprofits, and multi-family low-income housing developments, making energy efficiency and renewables accessible to everyone.
PACE is good for the environment and good for business.