PACE Financing

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

♦ Roofing

♦ Windows & Doors

♦ Refrigeration Systems & Equipment

♦ Fume Hoods

♦ Upgraded Elevators/Escalators

♦ Motors

♦ Building Management Systems

♦ Retro Commissioning

♦ Many other building upgrades

Where is PACE Available?

For the latest updates on PACE availability and other PACE resources, see pacenation.us.

PACE availability map PACE availability map key

Free PACE Feasibility Assessment

For buildings in qualifying ares. Find out what solar can do to reduce your operating expenses!

Assessments include:

  • preliminary energy audit
  • rates & incentives analysis
  • financial pro forma
  • preliminary underwriting assessment
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