WHAT IS PACE?
Property Assessed Clean Energy
An innovative mechanism for financing energy efficiency and renewable energy improvements on private property.
JOIN THE CAMPAIGN!
We all want a bright economic future for South Dakota. But many businesses, commercial, industrial, agricultural operations, and multi-family buildings in this State face high utility bills because of old or inefficient buildings that in need of upgrades. However, it can be challenging to afford the up-front cost, even though energy efficiency projects would save more money on utilities in the long run than they cost up-front.
PACE would enable a solution where private financing (including loans from SD banks) can help property owners save money on utilities, expand local businesses, create jobs, and increase the economic vitality here in South Dakota. PACE financing will also be available for new buildings to be constructed with more energy efficient features that save money on both operating and maintenance costs.
Property Assessed Clean Energy (PACE) uses private capital from banks and investors to fund the up-front cost of energy efficiency upgrades, water conservation measures, and renewable energy installations to new and existing buildings. Like a Special Improvement District for sidewalks or sewers, the financing is repaid as an assessment on the property’s regular tax bill over a term of up to 20 years. The annual energy savings for a PACE project are designed to exceed the annual assessment payment, so property owners save money from the start.
PACE is a tried-and- true economic development tool that is enabled in 33 states. To allow its use in South Dakota, we must first pass PACE enabling-legislation. Then it’s completely voluntary and optional for both counties and individual property owners to participate.
PACE will benefit South Dakota businesses, industrial and agricultural operations, and that’s why a broad bi-partisan coalition including the Governor’s office, contractors, engineers, and others have come together to support it.