ABOUT PACE

Property Assessed Clean Energy (PACE) is a financing tool that offers building owners up to 100% funding for energy efficiency and renewable energy projects that can dramatically reduce energy use and utility bills. The PACE loan model requires little to no upfront cost, has lower interest rates and longer loan terms.

Offered by pre-qualified private lenders, PACE loans are repaid through a building’s property tax bill, following an assessment of the energy efficiency improvements, and have repayment terms of up to 30 years. PACE assessments are non-accelerating and remain with the building upon sale.

State and local governments sponsor PACE financing to create jobs, promote economic development, and protect the environment.

PACE IN NYC

The New York City Council approved PACE financing as part of the City’s Climate Mobilization Act, to mitigate the significant effects of greenhouse gas emissions from buildings. PACE will help New York City meet its goal of reducing greenhouse gas emissions by 80% by the year 2050.

The PACE program is sponsored by the Mayor’s Office of Sustainability (MOS) and administered by the New York City Energy Efficiency Corporation (NYCEEC) in collaboration with the New York City Department of Finance. PACE will help building owners lower operating costs, create a healthier occupancy environment, increase the value of their buildings, and comply with the Climate Mobilization Act’s building emissions intensity limits.

PACE loans will be available for energy efficiency and renewable energy projects in NYC in early 2020.

PROCESS AND ELIGIBILITY

Properties eligible for PACE financing include:

  • Commercial buildings
  • Industrial buildings
  • Buildings owned by tax-exempt organizations
  • Multi-family buildings

Eligible improvements may include:

  • Energy efficiency equipment upgrade
  • On-site renewable energy power generation

Specific program eligibility guidelines will be released in late fall 2019. Until that time, statewide criteria provides a good preview for some of the expected standards in NYC.

BENEFITS OF PACE

PACE offers several unique advantages for building owners, residents and the city at large.

Potential benefits for residents and building owners:

  • Significant reduction in energy bills with up to 100% financing
  • Little or no upfront cost
  • Long loan terms, up to 30 years
  • Upgraded building systems and cleaner air quality
  • Increased property value
  • Affordable housing: low-cost financing fills a critical funding gap for buildings with limited cash flow.

Potential benefits for residents and building owners:

  • Local job creation
  • Helps City achieve 80×50 climate goals
  • Significant energy use reduction
  • Enables buildings to comply with updated building codes and Climate Mobilization Act

ADDITIONAL RESOURCES FOR PACE

NYSERDA

PACENation

“Commercial PACE for Affordable Multifamily Housing.” Energy Efficiency For All, January 2018