Missouri Clean Energy Funding, LLC
Property Assessed Clean Energy Administration
|PACE - Property Assessed Clean Energy - is a financing mechanism that allows property owners an opportunity to borrow money, with little to no upfront cost, to install renewable energy and energy efficiency conservation measures.
A pivotal innovation, PACE creates Energy Efficiency & Renewable Energy assessments that are tied directly to the property and repaid via the owner's tax bill. The assessment, which is secured by a senior lien on the property, does not require an up-front payment. Because the assessment and lien are tied directly to the property, they can be transferred upon sale.
What does this mean in practice? Now improvements may be financed without concern that the property owner would not receive all the benefit of an investment in their property since the obligation is associated with the property and not the person. In cases where a property is sold before the end of a repayment period, the remaining obligation is transferred to the new owner in the same manner as other property taxes.
If designed properly, with appropriate safeguards in place, PACE should result in a net positive cash flow for property owners -- property owners should reduce their annual energy costs by more than the amount of repayment.
Residential Property Owners may discover the benefits of PACE here.
There are multiple benefits for residential property owners who participate in the PACE program. Click the link below to learn more.
|Commercial Property Owners may discover the benefits of PACE here.
Commercial property PACE funding is currently available for energy improvements of a wide variety of properties. These include businesses, multifamily housing, industrial, agricultural and even not for profit and public buildings.