What is Property Assessed Clean Energy (PACE) Financing?
Property Assessed Clean Energy is an innovative way to finance energy efficiency and upgrades to buildings. Interested property owners work with the Strategic Energy Group of Nova to evaluate measures that achieve energy savings and apply to their local PACE administrator to receive 100% financing. This debt is repaid as an additional charge on your property tax bill. Repayment obligations transfer to the next owner if the property is sold.
Why use PACE financing?
By offering up to 100% financing, PACE can eliminate the need to pay out of pocket for your project.
Depending upon the type of improvements installed, repayment may be amortized for a period of up to 20 years. You can optimize a project to realize positive cash flow.
The interest may be tax deductible.
Because PACE ties the loan to the property and not an individual, the loan may transfer upon sale or refinancing of the property. Therefore you may not need to be concerned about recouping the cost of your improvements if you decide to sell the property before the loan is repaid.
Who can take advantage of PACE?
PACE is only available to property owners in certain cities or counties that have adopted a program. To date, 26 states and the District of Columbia have PACE legislation. Click here to see if there is a PACE program in your state.
PACE financing can be used for residential, commercial or municipal properties. Programs offer competitive financing terms to property owners with at least some equity in their home or business and have not been delinquent on their property tax or mortgage payments.
What products and improvements can be financed with PACE?
Eligible products that can be financed with PACE generally include products that can be permanently affixed to a property and reduce on-site electric, gas or water consumption. Some examples include attic insulation; heating, ventilation and air conditioning replacements; solar photovoltaic and thermal systems; and low-flow toilets.
Who do I contact if I’m interested in learning more?
Click here to learn more.
Strategic Energy Group Manager
Nova Consulting Group Inc.