Property Assessed Clean Energy
Property Assessed Clean Energy (PACE) financing is a structure in which building owners take on debt for energy efficiency or renewable energy improvements that is repaid through an assessment on their property tax bill. The stability of the property tax bill allows building owners to make long-term investments in their buildings without being responsible for the outstanding debt if a building is sold. PACE is becoming a better known financing mechanism for energy efficiency and renewable energy and has financed 750 commercial projects to date including upgrades valued at $250 million.
The retail sector has invested approximately $45.7 million using this model to date and represents the most frequent property type to use PACE financing. There is potential for PACE to grow in the retail sector, particularly as more states adopt enabling legislation.