PACE FOR COMMERCIAL BUILDING OWNERS
Property Assessed Clean Energy
An innovative mechanism for financing energy efficiency and renewable energy improvements on private property.
Benefits of PACE for Commercial Building Owners
100% Financing
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PACE covers 100% of the hard and soft costs of an energy project so property owners don’t have to put any money down.
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Property owners can reallocate funds previously reserved for energy projects.
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This is especially important for properties with limited expenditure budgets (nonprofits, new businesses, etc.).
20-Year Terms
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PACE allows finance terms up to 20 years while standard commercial lending rarely exceeds 5-7 years.
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Allows projects with payback of 20 years, rather than only low-hanging fruit with quick paybacks. Longer terms may also mean that yearly savings more than make up for yearly payments from day one.
Solves Split-Inventives
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PACE tax assessments can be passed on to tenants under most lease forms.
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Tenants save on energy costs and experience the same net payments, or sometimes less!
Transferability
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PACE is attached to the building, not an individual or business.
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If the building is sold, PACE repayment seamlessly transfers to the new owner as part of the taxes, as well as the savings from the energy project.
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Removes part of the risk in investing in capital expenditures.
Why Should Property Owners Use PACE?
The purpose of this presentation is to clearly describe the many benefits of PACE financing for real estate companies and to provide examples of the financial impact of PACE under various lease forms.
One-pager: PACE for Commercial Building Owners
Learn more about the benefits of PACE financing for commercial building owners and real estate investors. Please download and distribute this printable one-pager!
PACE makes it possible for owners of commercial, industrial, multifamily, and nonprofit properties to obtain low-cost, long-term financing for energy efficiency, water conservation, renewable energy projects, and more.
Your business or organization can obtain 100% financing for clean energy improvements from a local PACE program. Municipalities and counties work with private-sector lenders to provide this financing for qualified projects, such as solar panel installations, which is paid back through an annual assessment on the organization’s property tax bill.
The payback term may extend up to 20 years, which can save your business money by ensuring that yearly utility bill savings from your energy improvements are greater than your annual PACE payment.
