Property Assessed Clean Energy (PACE) is an innovative way to finance energy efficiency and renewable energy upgrades to buildings. Interested property owners evaluate measures that achieve energy savings and receive 100% financing, repaid as a property tax assessment for up to 20 years. The assessment mechanism has been used nationwide for decades to access low-cost long-term capital to finance improvements to private property that meet a public purpose. 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 our nation’s buildings.
Benefits of PACE
PACE drives spending in the local communities through the installation of energy efficient equipment and the implementation of renewable energy measures. Major benefits of PACE are:
Commercial PACE improve consumer’s cash flow by decreasing energy needs and hence decreasing utility bills. PACE, compared to other retrofit mechanisms, is tax neutral and results in no exposure to county’s general fund. An economic study performed by ECONorthwest in 2011 predicts that every $1 million of EE/RE project spending results in $2.5 million in total economic output, roughly $250 thousand in state and local taxes, and approximately 15 new jobs nationwide. Another study conducted in 2011 by the United States Department of Energy on the economic impacts of the Boulder County (CO) Climate Smart (PACE) Loan Program found that $9 million spent on EE/RE projects on 598 homes contributed, statewide, to more than $7 million in personal income gains, just under $30 million of total economic activity, and the creation of roughly 125 short-term jobs.
AEI is your turn key provider for PACE projects throughout the metro area. To get started on your Commercial PACE project contact Steve Haslach or contact our office at 612-532-0384 to find out how your business or property can benefit from PACE financing.
How do I get started?
Energy Audit – Baseline recommendations and education – Contact AEI to help facilitate an energy audit and assessment with local utilities or anyone of our partner organizations for Lighting, Electrical, HVAC or Solar.
Non profits can take advantage of free energy audits through EnerChange by contacting us. Lighting retrofits for all commercial and non profit PACE projects can be facilitated by us and our partner Center for Energy and Environment.
Solar Assessments are conducted by our MREA certified and tranined assessors. After these audits and assessments, AEI will help you identify rebate, tax credit and finance opportunities.
Project Consultation – An AEI professional will work with you to develop a visual and written roadmap to success. This will included a consultation to review the results of the audits and assessments and identify the series of steps that might include structural reviews, electrical reviews
Apply for PACE loan – AEI staff will help walk you through it.