What is Property Assessed Clean Energy (PACE)?
PACE is the acronym for Property Assessed Clean Energy. But PACE stands for much more. It is a simple and effective way for county governments to create jobs, retain businesses, and keep dollars in the local economy without raising taxes – simply by helping to make commercial buildings more energy-efficient.
PACE is a government policy based on the principle that commercial energy projects – such as installing solar equipment or improving a building’s heat recovery system – are public benefits like sewers, roads, and bridges. PACE authorizes 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 or semi-annual surcharges on the property’s tax bill.
By lowering that property’s energy expenses, PACE makes the building more inviting to tenants and, consequently, more valuable. And with PACE, there are no upfront costs: PACE pays for 100% of a project and is repaid by the surcharge over a 20-year period. Moreover, the owner can sell the property, treat any expense as operational, and pass on costs to tenants.
PACE is underway in many states and has been named one of the Top Twenty World Changing Ideas by Scientific American magazine. Many county governments consider PACE a key component of their continuing efforts to promote economic development and to protect the environment.
Which means that PACE stands as a ready reply to the question, “What has my county government done for me? ”
- Lower utility bills for building owners
- Local job creation
- Environmental Benefits
- Assists states and local governments in reaching energy and water conservation goals
- Reduces carbon emissions and water usage
- Assist states in Clean Power Plan compliance
No Cost to Taxpayers
- PACE financing is funded through private capital, with no cost to taxpayers
What is eligible?
Almost any commercial or industrial building, including offices, hotels, restaurants, farms, shopping centers and other retail properties, warehouses, garages, and factories, is eligible for PACE financing. Buildings used by non-profit organizations may also be eligible.
Solar energy equipment
High-efficiency lighting and building systems
High-efficiency boilers and furnaces, and heating ventilation
Air conditioning (HVAC) upgrades
High-efficiency hot water heating systems, combustion and burner upgrades, fuel switching, heat recovery and steam traps
Building shell or envelope improvements
Building system energy management systems, and process equipment upgrades
Geothermal energy devices