Property Assessed Clean Energy (PACE)
Financing Programs for Homes & Businesses
Property Assessed Clean Energy (PACE) is a financing mechanism that offers a way for residential and commercial property owners to receive upfront funding for energy and water efficiency, renewable energy system installations, seismic retrofits, and electric vehicle charging stations improvements for their home or business - and to repay on their property tax bill over the course of up to 20 years and allows property owners to save time and money.
PACE: Simple Idea, Valuable Results
Traditional financing models for energy and water efficiency projects are often limited by high up-front costs, short repayment periods, strict credit requirements, high or variable interest rates, and limited availability. Alternatively, PACE employs a unique financing model of special property assessments that are paid over time (up to 30 years), accounting for the savings accrued from improved building efficiency or energy generation.
Residential and commercial property owners throughout the United States currently use PACE to pay for 100% of their projects' costs, while making their buildings more valuable. Financeable projects include:
- Energy Storage
- Lighting Improvements
- New Heating and Cooling Systems
- Seismic Retrofits for Almost Any Qualified Residential or Commercial Property
- Solar Panels
- Water Pumps
These improvements also help to reduce greenhouse gas emissions in the community and achieve the goals outlined in the Citywide Climate Action Plan.
How PACE Works
The PACE process hinges on creating assessments that are tied directly to a property, and repaid via the property owner's tax bill. PACE pays for 100% of a project's upfront costs, and makes longer payback projects immediately cash flow positive. Almost any residential or commercial building is eligible for PACE financing, including single-family residences, multi-family residential buildings, offices, hotels, and retail, agricultural, and industrial structures.
- Select Preferred PACE Provider: PACE financing is delivered through local contractors that are trained and certified by the PACE provider. If you have a preferred contractor, they can be certified to work on PACE financing projects. PACE providers generally offer similar upgrades but may differ in terms of their eligible properties, requirements, and loan terms. Please select your preferred PACE provider by clicking on one of the images to the right.
- Develop Project: Work with your selected contractor to identify the upgrade measures to be implemented. All measures must be approved by the PACE provider. Most PACE providers are able to provide same-day approval.
- Complete Project: Once approved, the PACE contractor will implement the upgrade measures. After you have signed a Certificate of Satisfaction, the contractor will receive payment from the PACE provider.
- Enjoy Savings and Increased Property Value while Making PACE Payments: After your project is complete, the PACE provider arranges financing for the project by adding an assessment to the property, which is payable in semi-annual installments on the property's tax bills. A lien is filed against the property as security until the assessment is repaid. The assessment is tied to the property (not to an individual), staying with it should the property be transferred or sold before being repaid.