Property Assessed Clean Energy (PACE) Loans
Both Maryland and Washington DC have passed PACE enabling legislation and new PACE programs are well underway in the District, as well as a growing number of Maryland Counties.
What is PACE?
Property Assessed Clean Energy (PACE) programs are designed to assist qualifying commercial and non-profit properties with financing energy improvements. The PACE loan from a private lender is paid back through annual surcharges on the property tax bill. This loan stays with the property and subsequent owner continues to pay the surcharge until the loan is fully paid. What is so good about PACE for a business owner or nonprofit?
- No out of pocket costs
- Typically cash flow positive throughout the loan term
- Off balance sheet financing
- No personal guarantees required
- Maintain all tax benefits and incentives (where applicable)
- Allows inclusion of multiple energy efficiency projects and solar; sometimes can include a roof replacement
Until now, only Leases, Power Purchase agreements, and traditional commercial loans were available for financing solar for small businesses. PACE has cracked the code.
Contact SES today to learn more 410-923-6090
SES President Rick Peters discussing PACE on "Financial Futures Now"...
If PACE is enabled in my area, how do I qualify?
- You need to own your building and have less than 95% leverage on the property
- The energy improvement loan cannot exceed the 35% of the enhanced property value (building and land).
- You are current on your property taxes