Property Assessed Clean Energy (PACE) addresses some of the main barriers traditionally hindering adoption of energy efficiency solutions and related projects. Through 100% upfront financing, fixed interest rates and long-term repayment, it makes energy efficiency retrofits accessible to a wider population, while enabling contractors to achieve a larger scale. By overcoming these bottlenecks, the mechanism contributes to improve individual’s health and wellbeing, as well as to meet society’s climate and energy goals.
- 282,000 improvement projects completed.
- Economic impact of $15.8B.
- Every year, the programmes create 126,000 jobs.
- Renovation projects have led to an estimated 29.74 billion kilowatt/hour savings.
- 7.44 million metric tons of carbon abated.
The financing mechanism solves the upfront cost barrier by having private investors finance 100% of project costs. These are repaid and collected with regular property taxes and charges. Cities place liens on homes that use PACE, thus providing investors with security of repayment.
Long-term repayment of up to 20 years matches the useful life of improvements made on properties. Since energy efficiency savings exceed the annual payments, the project cash flow is positive for homeowners.
It can be used to pay for new boilers, refrigerators, windows, insulation systems, renewable energy, water conservation upgrades among other devices. Technology has to be permanently affixed to a building, as the debt is attached to the property and transfers to a new owner upon sale.
Almost any building can be retrofitted with this finance model, ranging from homes to hotels and even industrial buildings. The mechanism can be combined with other incentive programmes.