Using PACE Financing for Energy Efficiency

Senior Living, energy solutionsBuilding owners can significantly lower their operating costs and boost cash flow by increasing energy efficiency. While these benefits are readily known, most organizations do not aggressively pursue energy efficiency due to funding, ROI and/or payback issues. Currently, AssuredPartners NL Tax & Energy Solutions is executing a multi-phased energy efficiency project that addresses all of these issues, while producing immediate, positive cash flow benefits. The first stage in this multi-facility solution is a $2.6 million investment facilitated with Property Assessed Clean Energy (PACE) financing.

PACE is a special, long-term financing tool for energy efficiency investment in buildings. It is not a conventional loan but a tax deductible assessment, attached to the building that is repaid along with the building’s regular property tax payment.

PACE financing has numerous benefits including:

  • Up to 100% of any energy efficiency project can be funded in a long-term arrangement without any upfront capital costs or impact on loan-to-value ratios.
  • PACE can finance energy efficiency investment in newly constructed facilities or retrofits of existing buildings.
  • These investments are typically immediately cash flow positive as the energy savings realized, exceed the annual assessment.
  • Increased energy efficiency raises a building’s property value and operating income while lowering repair/maintenance costs and providing added tax benefits.
  • The assessment is tied to the building, so there is no payoff if the building is sold: repayment responsibility is transferred to the new owner.

AssuredPartners NL Tax & Energy Solutions provides comprehensive energy efficiency services and financing options for organizations of all types and sizes.  To learn more, visit AssuredPartners NL Tax & Energy Solutions.

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