Property Assessed Clean Energy (PACE) Finance Resource Center
Property Assessed Clean Energy (PACE) financing is a mechanism for achieving energy retrofit or energy generation of existing privately owned buildings by utilizing special assessment district financing techniques to finance projects, with private capital, via property owners’ property tax bills. Practically speaking, a PACE program can be established to address a single piece of property, a district, a region or an entire state. This makes PACE a very flexible and easily implementable financing tool. In essence, the property owner is able to access affordable capital in the form of a loan for energy efficiency upgrades, retrofit and/or generation to their home or business. In turn, the municipality places a special assessment on that property’s tax bill. This assessment is collected during the regular property tax payment process with payments made to the private lender. Over time, the loan is paid off and the property sees measurable energy savings creating a more sustainable energy solution and community.
One of the major benefits of the PACE model is that the tool can be tailored to broad and narrow programs at the same time. Communities can create broad programs that encompass larger geographic districts and allow for multiple uses such as housing, commercial, industrial and mixed-use. Conversely, programs can be designed to be very narrow such as assistance for low-income households, manufacturers, business districts, etc.
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CDFA California Financing Roundtable Webcast: PACE Financing in the Golden State
Property Assessed Clean Energy (PACE) financing is being implemented by communities across the nation as a powerful tool to drive the installation of energy efficiency improvements and renewable energy systems. In light of this emerging trend, the CDFA California Financing Roundtable partnered with CALED and the League of California Cities to organize a webcast which discussed the ins & outs of PACE financing and the impacts it can have on communities within the state of California. Through this webcast, presenters from Renewable Funding and Figtree Energy Financing compared and contrasted the most popular PACE programs and presented a checklist of criteria which communities must consider when choosing PACE programs.