The Property Assessed Clean Energy (PACE) model is an innovative mechanism for financing energy efficiency and renewable energy improvements on private property. PACE programs exist for:
Commercial properties (commonly referred to as Commercial PACE or C-PACE).
Residential properties (commonly referred to as Residential PACE or R-PACE)
PACE programs allow a property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment. The unique characteristic of PACE assessments is that the assessment is attached to the property rather than an individual or the property owner. In turn, the repayment obligation may transfer with property ownership if the buyer agrees to assume the PACE obligation and the new first mortgage holder allows the PACE obligation to remain on the property. This can address a key disincentive to investing in energy improvements because many property owners are hesitant to make property improvements if they think they may not stay in the property long enough for the resulting savings to cover the upfront costs.
Property owners that voluntarily choose to participate in a PACE program repay their improvement costs over a set time period—typically 10 to 20 years—through property assessments, which are secured by the property itself and paid as an addition to the owners' property tax bills. Nonpayment generally results in the same set of repercussions as the failure to pay any other portion of a property tax bill.
PACE programs are typically enabled through state legislation, and authorized at the local government level. Municipalities may directly administer residential PACE programs, or through public-private partnerships with one or more PACE providers. Residential PACE financing programs are currently available in the following states:
California (10 active programs)
Florida (4 active programs)
Missouri (3 active programs)
The Commercial PACE Working Group sunset in 2020. The Working Group was a cohort of state and local governments working together to learn about, launch, and refine C-PACE financing programs. This DOE initiative leveraged technical assistance from leading C-PACE experts and market partners to:
Develop tools and solutions to barriers facing state and local governments.
Convene peer exchanges to showcase public-sector leadership and effective public-private partnerships.
Provide information from leading technical experts.
Below, you can find the map of C-PACE state and local participants:
State and Local Participant Map