Property Assessed Clean Energy (PACE) is an innovative program that provides low-cost, long-term financing for water and energy efficiency and conservation improvements to commercial and industrial properties. Senate Bill 385 (83R)) allows municipalities and counties to work with commercial lenders and property owners to pursue improvements using property assessments as a secure repayment mechanism.
Under a PACE program, property owners would evaluate measures that achieve energy savings and receive financing, repaid as an assessment on the building. The assessment term would be up to 20 years. The assessment mechanism allows access to low-cost, long-term capital to finance improvements to private property. By eliminating upfront costs, providing low-cost, long-term financing and making it easy for building owners to transfer repayment obligations to a new owner upon sale, PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in buildings.