Setting the PACE 2.0
Property Assessed Clean Energy (PACE) financing reached a turning point in 2013. Twenty-five programs now make PACE financing available in nearly 500 cities and towns in nine states and Washington, D.C. More than 250 PACE projects worth over $75 million have been completed; programs report a total pipeline of more than $250 million in project applications.
“Setting the PACE: Financing Commercial Retrofits 2.0” updates a February 2013 report from PACENow, the Institute for Building Efficiency and the Urban Land Institute that provided a first look at the structure of PACE programs. The new report, built on interviews with program administrators, financiers, contractors, building owners and project developers, analyzes the PACE market’s direction, successes and challenges and examines and compares four top-performing PACE programs.
Various financing models and PACE program designs are being tried, ranging from programs entirely funded and run by the private sector to programs entirely administered by government staff. Some best practices emerged from all programs:
Market education and sales support is essential to generate and originate new projects
The PACE process must be standardized and streamlined for many owners
A project leader should be clearly designated
Uniformity is important across a service area
PACE should be incorporated into the existing real estate ecosystem
Companies that administer program for municipalities can work with motivated local
building owners to expand municipal markets
Various financing models and program designs are being tried across the country and may appeal to buildings of different size and type. Starting a PACE program in a new market is like trying to light a fire – the process required at the beginning may be quite different from what it takes to keep the fire burning and help it grow over time.
Issue Brief | Setting the PACE 2.0 >>
PACE in 90 Seconds >>
Introducing Property Assessed Clean Energy Financing (PACE) >>