Not many are aware that over $2 Billion in capital has been made available for financing energy efficiency projects within the last few months. This money is being made available through private capital to be used with Property Assessed Clean Energy (PACE) mechanism. PACE was supposed to have rolled out several years ago but due to some political wrangling mostly from Freddie Mac and Fannie Mae was put on hold. Now PACE is coming online in various counties for the commercial and industrial real estate market. These funds are available throughout the US but mostly focused for now in California.
PACE enables owners to finance energy efficiency upgrades / projects in an off balance sheet method. PACE accomplishes this financing by creating a tax assessment on the property. This tax assessment is designed to be paid for out of the energy savings on the project and can be amortized up to 20 years.
Some of the projects that can be financed through PACE includes HVAC, Roofing, Daylight Harvesting, Lighting, Lighting Controls, Energy Monitoring, Windows, Insulation, Motor Upgrades and more.
Some benefits of energy efficient financing include:
Capital improvements paid for out of energy savings
PACE financing is off the balance sheet and is not subject to standard finance approvals
Multiple types of finance, rebates and incentives can be combined to increase the ROI
Capital energy improvements can be passed through to the tenants via NNN expenses
Increased property value through increased net income and capital improvements
Reduction of maintenance cost through replacement of older equipment or technologies
Reduced carbon footprint
Installed capital improvements with little or no money out of pocket
Increased net operating income from reduced energy consumption
In financing your energy projects PACE is just one of the financial instruments available to help you achieve your energy saving goals. When financing an energy project you should weigh all available options, rebates, credits and finance plans available. You should also make sure that the energy upgrades will pay for themselves. When implementing energy efficiency projects often a better ROI can be attained by combining technologies such as insulation and roofing or daylight harvesting and light controls.
Reduce your consumption to pay for your upgrades. Platinum and our team of partners can create ROI reports on your buildings including Roofing, Daylight Harvesting, Lighting, Windows, Solar, HVAC and more. Email us today at email@example.com or call us at (800) 284-5887 to get your no obligation energy assessment.