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What is PACE Financing for Commercial Real Estate?

Photo by John Macdonald on UnsplashAs a commercial building owner, you may be interested in making meaningful long-term investments in energy efficiency and alternative energy for your property.  But the question may be: how can my company afford this?

There is a unique loan program designed to help private-sector building owners make energy-efficient improvements: PACE financing for commercial real estate.

PACE (Property Assessed Clean Energy) loans are helping owners of commercial property in many areas. They can make those needed improvements that not only save energy, but save them money as well through reduced energy costs. PACE financing is repaid as an assessment on the property’s regular tax bill. It is processed the same way as other local public benefit assessments (sidewalks, sewers).

PACENation is a national non-profit group that promotes PACE financing for commercial real estate. Through the help of PACE funding, there were thousands of projects last year that represented investments into clean energy savings for commercial real estate.

One program that has been notably successful is Connecticut’s Commercial Property Assessed Clean Energy (C-PACE) program.  According to PACENation, only California and Ohio beat out Connecticut with total investment deployed through the end of 2019 using C-PACE. The Connecticut program helped local businesses by funding more than 300 projects with a total of more than $163 million in clean energy financing

In these successful PACE programs, the full cost of your project is covered and a repayment plan is created based on a variety of factors that are unique to your business. PACE funds can be used to upgrade lighting, heating and cooling systems, insulation, motors and water pumps as well as adding solar panels and other technologies.

PACE financing is repaid as an assessment on the property’s regular tax bill. It is processed the same way as other local public benefit assessments (sidewalks, sewers) have been for decades.

From Envocore’s perspective, PACE financing can generate significant economics benefits and create jobs; more over, it creates a pathway by which our traditional ESCO customers can offer bundled energy services to a market they haven’t consistently touched previously, commercial and industrial buildings in the private sector.

Envocore offers services across the United States and Canada in water and lighting efficiency, building envelope solutions and utility smart metering. Our broad skill set allows us to take your project successfully from audit to implementation and stay on time and on budget.

We would love to talk with you about how your own local PACE financing for commercial real estate could help you achieve real savings and add resilience to your business.  

Contact us today to find out how to get started

 

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