Renewable Energy for your Community - Property assessed clean energy (PACE) programs enable local governments to finance renewable energy and energy efficiency projects on private property, including residential, commercial and industrial properties. The programs eliminate the chief barrier to clean energy installations: the large upfront cost.
Generally, PACE is rooted in traditional land-secured municipal finance. A local government creates an improvement district; a bond, secured by real property within the district, is issued; and the bond proceeds are used to fund renewable energy and energy efficiency projects. Property owners then repay the debt service on the bond in fixed payments as part of their property tax bill.
There are two major characteristics, however, that make PACE unique. First, property owner participation is 100% voluntary. Only those property owners who choose to participate in the PACE program pay additional costs. Second, the bond proceeds are used to pay for prequalified clean energy improvements on participating properties.
PACE is a powerful tool for municipal governments to stimulate the local green economy while providing a competitive financing program for residents.
How it Works: municipalities are provided with a turnkey solution specifically engineered to support the development of property-assessed clean energy (PACE) financing districts; complete program or as individual a la carte services include the following components:
Services - to establish the strongest possible legal and programmatic framework .
Administration - municipal resources and staff are minimized by providing a program that is characterized by customer convenience, a streamlined process, and quality assurance. Administrative services include:Education & Marketing, Application Processing, Property Underwriting, Project Verification, Quality Assurance, Customer Service Origination and Closing Process.
Financing – a financing program to provide the capital for the on-demand funding of PACE projects. The goal of the financing program is to create a public/private partnership that provides a platform for long-term private capital with minimal or no municipal subsidy or liability for the bonds. Financing services include: enhancing bond security and structure, developing adaptable financing structures and providing short term and long term capital.
For Property Owners - high upfront costs have stopped countless homeowners from installing renewable systems or undertaking major energy efficiency retrofits. By participating in a PACE program, property owners can make these improvements and pay for them over long periods of time, while they simultaneously enjoy major energy bill savings. Because the debt is secured by a lien on the property, if the current owner sells the property the new owner assumes the rest of the repayment responsibility as well as the continued benefit of the improvements.
Benefits for Property Owners. The PACE program solves many of the financial hurdles facing property owners interested in installing renewable systems and other energy efficiency upgrades, no upfront cost to the property owner, incremental property tax payments are low and fixed for 20 years, property tax transfers to the new owner when the property is sold, energy savings reduce utility bills.
For Governments PACE is an innovative tool that allows local governments to aggressively reduce greenhouse gas emissions, and kick start green economic development at minimal cost and no liability. PACE programs can be administered at a city, county, regional, or state level, depending on state law.
Benefits to Cities and Counties: Cities and counties can use PACE to meet their climate and energy goals, PACE program costs can be paid out of bond proceeds, No liability or other exposure to a city’s general fund, PACE is a type of financing well-known to local governments and the bond market, PACE can catalyze and promote green economic development.
community development enterprise
Renewable Energy for your Community - Property assessed clean energy (PACE) programs enable local governments to finance renewable energy and energy efficiency projects on private property, including residential, commercial and industrial properties. The programs eliminate the chief barrier to clean energy installations: the large upfront cost.