Property Assessed Clean Energy (PACE) financing is a tool created to convert the capital costs of energy improvements into a tax assessment on the property.
It can be used for new construction to replace equity or to finance retrofits to existing buildings.
Typical PACE qualifying enhancements include: lighting, HVAC, controls, low-flow water fixtures, windows, roofs and walls with enhanced insulation, renewables, and others.
Many states have active projects, and each has their own unique requirements. We help building owners and developers qualify, assess, and apply for PACE financing throughout the U.S.
STEP 1: DETERMINE PROJECT ELIGIBILITY
We can identify if PACE is available in your area for your specific project. We work with you to identify which parts of your project qualify and estimate your PACE proceeds.
STEP 2: COORDINATE WITH A FINANCIER
We are happy to work with your financier, or connect you with potential financiers. We have strong relationships with PACE lenders throughout the U.S. and know which types and sizes of projects they will likely fund.
STEP 3: INITIATE THE APPROVAL PROCESS
After formally engaging Asset Environments, we will work with your team and the financier to develop the technical documents required for approval.
FAQ ABOUT Property Assessed Clean Energy
PACE FINANCING Project Examples
what is a pace loan?
A PACE loan is long-term, non-recourse, fixed-rate financing that can be used to finance building upgrades or energy-efficient new construction.
The loans are generally for energy efficiency or water reduction improvements. Regulations vary by state and may include other enhancements such as resiliency measures.
Who is involved in the PACE process?
The process generally involves the following people / groups:
How long does it take to get a PACE loan?
It varies, but generally 30 to 60 days are required, depending on many factors.
Where is PACE allowed?
Why would I use PACE on my project?
PACE can be used for many reasons. Some of the most common include:
How do you size a PACE loan?
PACE can finance up to 100% of retrofit projects and as a general rule 15% - 25% of new construction projects. However, it can vary significantly depending on the project type, size, and location.
There are many factors to consider including, but not limited to: loan-to-value ratios, senior lender consent, PACE financier underwriting, and energy efficiency qualifications.
What's the difference between R-PACE and C-PACE?
The “R” and “C” stand for “Residential” and “Commercial”. Note that multifamily properties such as apartments are considered commercial. A majority of states have C-PACE programs but only a small number have R-PACE programs.
What is the typical term for a PACE loan?
Terms are generally restricted by the average useful life of the upgrades, but there may be other limiting factors.
Fixed-rate financing periods of 20-25 years are typical; however, they could be as long as 30 years.
What is a PACE Program?
To use PACE, a state must have enabling legislation in place, and a local ordinance is also usually required.
A PACE program is the combination of the legislation, approving authority and the other parties involved in originating and approving a PACE loan.
What can you finance with a PACE Loan?
PACE can generally be used on both retrofits and new construction projects that reduce energy consumption (and water consumption in some states).
Typical technologies include:
A small number of states, including California, Florida and Pennsylvania, also allow "resiliency" measures, such as wind resistance, flood resistance, backup energy generation and other building enhancements.
Can I fund solar with PACE?
Yes, solar installations on both existing buildings and new construction can usually be funded with PACE financing. Solar farms may also be eligible depending on state regulations.