PACE Financing is changing how building owners view energy upgrades
Microgrid is a leading PACE Project Developer nationally.
We provide turnkey services including feasibility, financing, and construction management.
What is Pace?
PACE = Property Assessed Clean Energy
PACE is an exciting and innovative new approach to commercial energy improvement financing that is growing rapidly around the US.
PACE provides a simple way for municipalities to help local property owners make energy improvements to their properties.
Energy improvements are funded through a City-sponsored finance program and repaid through a property tax assessment over a period of up to 20 years.
Why Use PACE?
The rapid growth of PACE financing is due to the many unique benefits it offers, including:
- 100% financing, no cash requirement
- Off Balance Sheet
- Broad range of credit accepted
- Low, fixed rate, with up to 25 year term length
- Treated as Equity on new construction projects
- Immediate positive cashflows, increase building value
- No payoff upon sale of property, transfers to new owner
- Tenant accessible
- Non-recourse, non-accelerating
- Combine multiple energy improvements
- Take care of deferred maintenance
- Cash incentives as Year 1 income
How PACE Works
- Innovative approach to leveraging “Energy Equity” in your property; using energy savings to pay for energy projects
- PACE is modeled after methods to fund public benefits such as roads, sidewalks, and fire departments.
- Allows a property owner to choose to levy a “clean energy assessment” that is tied directly to their property and is repaid as part of the annual property tax bill.
- Private funding sources are used for improvements, and are secured by a senior tax lien on the property. Payments flow through the local PACE program.
- The PACE program is run by a contracted 3rd party, with program fees paid through each project financing.
What Projects Qualify
♦ HVAC Systems
♦ Water Conservation Measure
♦ Lighting & Controls
♦ Demand charge reduction measures
♦ Solar PV
♦ Windows & Doors
♦ Refrigeration Systems & Equipment
♦ Fume Hoods
♦ Upgraded Elevators/Escalators
♦ Building Management Systems
♦ Retro Commissioning
♦ Many other building upgrades
Free PACE Feasibility Assessment
For buildings in qualifying ares. Find out what solar can do to reduce your operating expenses!
- preliminary energy audit
- rates & incentives analysis
- financial pro forma
- preliminary underwriting assessment