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PACE Financing FAQs

 

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What is PACE?

 

Property Assessed Clean Energy (PACE) is an innovative loan financing option for residential and commercial properties that provides 100% of the financing required for money saving energy and water projects.  Long term repayment of up to 20 years makes longer payback projects immediately cash flow positive and buildings more valuable. 

PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any property – homes, commercial, industrial, and non-profit.

What are the benefits of PACE? 

  • No upfront costs
  • Costs can be passed on to next property owner
  • Portion of the interest is tax deductible


What is the term of the loan?
 

  • Loans can range from 5-20 years
  • Interest can range from 6.5%-8.5%


How does it work?

The loan is with the property and not the individual, assessed on the property taxes for terms up to 20 years.

Property owners across the US are using PACE because it saves them money and makes their buildings more valuable. PACE financing stays with the building upon sale and is easy to share with tenants.

The program is administered through local contractors that are vetted, trained and monitored by the PACE provider. Customers can contact an eligible contractor, or use their own contractor, who must be certified by the PACE provider.

Program providers are authorized locally by municipalities or joint-powers authority agencies.

What is eligible for financing?

In general, most products that can be permanently affixed to a property and reduce on-site electric, gas or water consumption will be considered eligible. Some examples include attic insulation; heating, ventilation and air conditioning replacements; solar photovoltaic and thermal systems; drip irrigation and low-flow toilets.

Why PACE?

PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings. PACE financing solves the upfront cost barrier by providing 100% financing for project costs. For contractors, PACE makes it easier to close a larger scale projects.

For more information visit Pace Nation, a national non-profit advocate for PACE financing.

Last updated: Wednesday, 06/29/2016
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