Help save PACE by taking action today to oppose S. 838 and HR. 1958 that stand to kill PACE financing nationwide. Please click the button below to send an email to your Senators and members of Congress, members of the Senate Banking Committee, and the bill’s cosponsors.

Under the guise of consumer protections, and at the behest of the banking lobby, this new bill would kill one of America’s most successful energy efficiency and clean energy financing models. It must be rejected.


The property-assessed clean energy (PACE) model is an innovative mechanism for financing energy efficiency and renewable energy improvements projects. Local governments, or other inter-jurisdictional authorities fund the up-front cost of energy improvements on commercial and residential properties, which are paid back over time by the property owners.

Immediate Positive Cash Flows

Operating Expenses go down by more than the payment ♦ Net Operating Income Increases ♦ Energy efficiency upgrade increases property collateral and resale value

Flexible Terms and Rates

Customizable terms from 5-20 years ♦ Competitive below market rates ♦ Automatically transfers to new property owner if sold ♦ 100% of the project costs can be financed – NO OUT OF POCKET COSTS

Accounting Advantages

Off balance sheet accounting, repayment is through an annual charge on the tax bill ♦ No effect on DTI ratios or future borrowing power ♦ Eligible MACRS accelerated depreciation

Property Based Credit Metrics

Underwriting eligibility based on the property, not owners credit ♦ Unrated company credit is not an issue ♦ No personal recourse ♦ Building’s operating costs decrease, which increases the Debt Service Coverage Ratio

Provides hedge against rising utility rates

Fixed payments less than current electricity costs for entire term ♦ Cumulative savings and IRR grow as energy prices continue to increase

Energize NY

Although New York State passed PACE-enabling legislation in 2009, the local municipalities must still pass local law to adopt it.

After a municipality becomes a PACE active member, the Energy Improvement Corporation (EIC) funded by NYSERDA and US-DOE is tasked with running and administering the program. EIC is a New York State non-profit, local development corporation, controlled by its member municipalities. EIC offers it’s Energize NY services like support and PACE project financing in the member municipalities.

Click here to visit Energize NY and learn more.

PACE Qualifications

In order for a project to be eligible for PACE financing, it must meet the following criteria:

  • Estimated annual energy savings from improvements must be greater than annual finance payments
  • Commercial or Not-for-Profit owned property
  • Property’s existing loan-to-value is no greater than 80%
  • Financing up to 10% of benefited property value
  • No Bankruptcy within last 7 years
  • At least 3 year history of timely property tax payments
  • Existing lender consent
  • NYSERDA/Utility energy assessments

An example Project Summary

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