What is PACE

Category :

PACE stands for Property Assessed Clean Energy, and presents an innovative and highly beneficial way for property owners to finance energy efficiency upgrades and renewable energy projects, including retrofits and water control measures.

Private investors, like KawaPACE in partnership with local governments, provide and arrange PACE funding to cover the entire cost of the project. The property owner has up to 30 years to repay, via a low – cost, tax – like bill on the property, with the assessment transferring to the new owner if and when the property is sold.

What makes PACE attractive and beneficial:

  • What makes PACE attractive and beneficial:
  • No upfront cash required
  • Can be treated as an off – balance sheet item
  • Long – term assessment – up to 30 years –
  • PACE assessments are secured by property and can transfer to the next owner
  • Competitive interest rates (tax collection mechanism is well understood and considered very secure)
  • Immediate positive cash flow and higher ROI through tangible energy savings
  • Increases property value appraisals
  • Presents attractive lease opportunities
  • Assessment costs and savings can be shared with tenants

PACE is a Win-Win-Win situation across the chain

  • Property owners: lower utility bills, efficient and clean energy generation, property value increase
  • Contractors & ESCOs: business growth, best practices, innovation
  • Lenders: new loans, reliable process, fully collateralized, senior lien position, improved asset value
  • Government: reduced peak demand, improved grid loading, renewables as source, positive environmental impact
  • Municipalities & Communities: increased economic development and jobs, improved building infrastructure, overall green impact