A new whitepaper asserts that Property Assessed Clean Energy (PACE) financing can remove the typical barriers that commercial property owners face in implementing energy-efficiency improvements.
The paper was authored by the national non-profit organization PACENation.
Under the PACE financing system, municipalities and counties are authorized to work with private sector lenders to provide upfront financing to commercial property owners for qualified projects and to collect the repayment through annual assessments on the property’s real estate tax bill. The term of PACE financing may extend up to 20 years, resulting in utility and other cost savings that exceed the amount of the assessment payment, according to PACENation. PACE legislation for commercial property has been adopted in 29 states and the District of Columbia.
The obligation to repay the financing automatically transfers to the new owner upon the sale of the property, along with the energy-saving benefits. The cost of PACE financing, and the benefits generated, can also be shared with tenants under most lease forms, according to PACENation.
(Contact: Sheldon Groner at sgroner@nareit.com)