Commercial PACE 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. Qualified properties can use C-PACE to receive lower-cost, long-term flexible financing for up to 100 percent of clean energy property improvements to be repaid as a surcharge on the property tax for up to 20 years. 

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.

 

MC PACE Logo

 

Montgomery County’s Commercial PACE Program

In May 2014, the Maryland General Assembly passed a law allowing local jurisdictions to implement Commercial PACE programs. On March 31, 2015, Council Bill 6-15, Commercial Property Assessed Clean Energy Program (PACE), was adopted, and later amended by Bills 18-16, 33-18, and 7-19. For additional information on this history of this program, please visit the Department of Finance’s PACE webpage.

The C-PACE Financing program that Montgomery County developed is only applicable to commercial properties - not residential properties.

As required by the County’s C-PACE law, annual reports are prepared for the County Council and available for download on DEP’s Environmental Laws, Regulations & Reports webpage (under Reports by Topic, Energy section).

 

 

MC-PACE Program Now Administered by Montgomery County Green Bank

In early 2021, Montgomery County was proud to select the Montgomery County Green Bank to administer the county’s C-PACE financing program. Read the press announcement.

Building owners, capital providers, and contractors interested in Montgomery County’s C-PACE program can contact the Montgomery County Green Bank to learn more about getting started.