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Property Assessed Clean Energy Financing

 

What is PACE Financing?

PACE stands for Property-Assessed Clean Energy Financing. Property Assessed Clean Energy (PACE) is an innovative way to finance energy efficiency and renewable energy upgrades to commercial buildings. Interested property owners evaluate measures that achieve energy savings and receive financing (potentially up to 100% of the cost and for up to 20 years), to be repaid as a surcharge on the property tax. (Source: PACE Now )

 

Benefits of PACE Financing

Collecting the surcharge on a property tax bill, the model on which PACE is built, has been used nationwide for decades to access low-cost, long-term capital to finance improvements to private property that meet a public purpose. By eliminating upfront costs, providing low-cost long-term financing and making it easy for building owners to transfer repayment obligations to a new owner upon sale, PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings. 

 

Image of solar panel array. Photo credit: Shutterstock / wang song
Photo credit: Shutterstock / wang song

 

Who can Participate?

Montgomery County is developing a program for commercial property owners to access PACE financing. Typical requirements include that the building owner is current on tax and mortgage payments and has no outstanding liens outside of mortgage or existing surcharges, that the property is not subject to bankruptcy, that the proposed projects are eligible conservation and efficiency or clean energy upgrades, and that mortgage lender consent can be achieved. The program that Montgomery County is developing is only applicable to commercial properties - not residential properties.

 

Montgomery County Commercial PACE Website

Visit Montgomery County’s new website for our Commercial PACE Financing program: www.MC-PACE.com On this website, you will find all of the resources you’ll need to use C-PACE financing for your building upgrade project, including project application, program guidelines, contact information, and a list of registered contractors that you can refer to for projects.

 

What is Montgomery County Doing?

The Maryland General Assembly passed a law allowing local jurisdictions to implement PACE programs.  Montgomery County has been working with a consultant throughout 2014 to design a program that fits the needs and resources of the County. On March 31, 2015, Council Bill 6-15, Commercial Property Assessed Clean Energy Program (PACE), was adopted (amended by Council Bill 18-16 on June 28, 2016). Montgomery County has selected PACE Financing Servicing, LLC as the Program Manager and Greenworks Lending, LLC as the County Designated Lender. Read the press release here.

Download the Montgomery County C-PACE Financing Brochure for an overview of what you need to know about the program and how to get started. 

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