PACE Program Consulting
PACE breaks down the financing barrier for renewable energy and energy-efficiency projects. We break down the technical information barriers.
Property Assessed Clean Energy (PACE) programs use the special improvement district (SID) legislative mechanism to finance clean-energy projects using low-interest municipal bonds. The projects produce positive cash-flow for the end-user, who pays for them over time through a tax assessment that stays with the property. PACE is increasingly being used to spur economic development in a city, while improving the value and attractiveness of its properties.
PACE programs are important because of their ability to distribute risk and provide access to capital. This can allow properties with low payback thresholds - such as manufacturers - or owner/tenant buildings, to overcome several barriers to investing in energy-efficiency or renewable energy technology. Consider the many office buildings where the tenant pays the utility bills, but does not own the building or its equipment. In these scenarios, investment in energy-efficiency and renewable energy is constrained by the equipment and energy costs being split amongst two parties. PACE provides a mechanism to make these investments while benefiting both the landlord and tenant. Alternately, consider a small office building which may change hands every 5 years or so. PACE allows a projects financing to stick with the property, alleviating uncertainty and lengthening the payback threshold of the building owner.
For PACE programs to be effective, it is imperative that they actually produce positive cash-flow for the building owners or tenants. With energy-efficiency, this is trickier than it seems. This is because energy-efficiency projects are actually very technical, and achieving energy savings is highly dependent on getting the details right. This is where our team fits in with your PACE program. We provide technical certainty that energy savings will be achieved, by offering the following services for PACE:
Invest in energy-efficiency with certainty - contact us today.