PACE - Property Assessed Clean Energy
Property Assessed Clean Energy financing is an innovative tool that provides low-cost, long-term funding for energy efficiency, renewable energy, water conservation projects in commercial buildings. Commercial property owners can obtain 100 percent upfront financing from private capital providers for up to 30 years for improvements such as HVAC, lighting and solar photovoltaic systems in both existing building and new construction projects. Funding is secured by a special assessment lien on the property and is repaid as a line item on the property tax bill. Check out the attached summary of C-PACE.
- No money out of pocket: 100 percent financing including hard and soft costs.
- Long-term, fixed interest rate financing (up to 30 years) resulting in lower annual payments.
- In many cases, cash flow positive within the first year.
- Property owner may pass through C-PACE Assessment to tenants (if allowed by lease)
- Potential for off-balance sheet treatment per an accountant.
- Reduces capital expenditure budget - upgrades paid through operational savings.
- Eligible measures cover broad capital and facility improvement needs.
- Extends building lifespan while improving comfort.
- C-PACE assessment transfers upon sale to the next property owner ("runs with the land")
DuPage County's C-PACE program is being administered by the Illinois Energy Conservation Authority NFP (IECA), an Illinois not-for-profit corporation. Visit the IECA website for more information about C-PACE or to submit a pre-application. For a wide range of case studies and information on PACE programs throughout the U.S., visit PACENation.