Property Assessed Clean Energy "PACE"
PACE (“Property Assessed Clean Energy”) is an innovative financing structure that makes it possible for owners of commercial, industrial, multifamily, and nonprofit properties to obtain low-cost, long-term financing for energy efficiency, renewable energy and wind hardening projects.
PACE authorizes municipalities or counties to work with private capital providers to provide upfront financing to commercial property owners for qualifying improvement projects, and to collect the repayment through annual assessments on the property’s tax bill. Depending on the effective useful life of the product, the PACE financing term may extend up to 30 years, resulting in utility and other cost savings that typically exceed the amount of the assessment payment.
Unique Benefits of Commercial PACE
100% financing with no up-front, out-of-pocket costs for the property owner
Positive cash flow and increased property value, even with long payback projects
Alignment of landlord and tenant interests, as the PACE assessment, along with the cost savings generated by the improvement project, can be shared with tenants under a triple-net lease structure
PACE assessment automatically transfers to the new owner upon sale
Commercial PACE Program Administrators
Interested in additional information on approved and upcoming PACE Program Administrators under the FDFC PACE Program?
Interested in becoming an FDFC PACE Program Commercial Program Administrator?