Property Assessed Clean Energy (PACE) is a financing mechanism that enables private lenders to finance building upgrades and new construction of high-performance buildings and then receive their loan repayment through the city’s property assessment.
PACE assessments are paid by the property owner through property taxes, so the repayment of PACE funded upgrades remain with the property when a property is sold. Property owners can implement energy efficiency enhancements without large upfront costs, and typically repay them over 15 or 20 years along with the property tax bill.
Cities that offer PACE programs as a key tool to spur growth in improvement districts stimulate the flow of private capital and economic growth in critical areas of cities without jeopardizing general funds
Over the last decade, PACE loans, both commercial and residential, have financed over $800 million in projects across 35 states, establishing a track record of repayment and reliability. PACE loans show the potential of public-private partnerships to funnel private capital into the green economy through innovative financial mechanisms. The US Department of Energy supports PACE programs as a strategy to maximize public resources and offer clean energy financing for small businesses, multifamily affordable housing properties, and nonprofit community organizations.
DC PACE is a financing product developed through a partnership between the District Department of Energy and the Environment (DOEE) and Urban Ingenuity. On October 1, 2021, DC Green Bank is the administrator of the DC PACE program.