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total number of approved pace projects$0m
Total PACE financing for energy efficiency projects$0m
Average size of energy efficiency project$0
Average annual assessment$0
Average annual energy savingsWhat is PACE?
Property Assessed Clean Energy (PACE) is a financing mechanism that enables low-cost, long-term funding for energy efficiency and renewable energy investments. PACE financing is repaid as an assessment on the property’s regular tax bill, and is processed the same way as other local public benefit assessments (sidewalks, sewers). Commercial PACE is specific to commercial, nonprofit or governmental properties.
How does it work?
PACE is a national initiative, but programs are established locally and tailored to meet regional market needs. State legislation is passed that authorizes municipalities to establish PACE programs. In the Columbus Region, the Columbus Regional Energy Special Improvement District was formed to administer the program.
PACE lenders provide PACE financing. In Columbus, the Columbus-Franklin County Finance Authority was the first PACE lender in the market. Today, a number of private lenders also offer commercial PACE financing. PACE is voluntary for all parties involved. PACE can cover 100% of a project’s hard and soft costs. PACE financing may be used for cost-saving energy efficiency improvements to existing buildings or new construction. Energy projects must permanently affixed to a property. The PACE assessment is filed with the local municipality as a lien on the property.
Why is it so popular?
Property owners may be able to fund projects with no out-of-pocket costs. Since PACE financing terms extend to up to 30 years, it’s possible to undertake deep, comprehensive retrofits that have meaningful energy savings and a significant impact on the bottom line. The annual energy savings for a PACE project may exceed the annual assessment payment, so property owners may be cash flow positive immediately. That means there are increased dollars that can be spent on other capital projects, budgetary expenses, or business expansion. Local governments love PACE because it’s an economic development tool enabling investment (renovation or new construction) in the community. It encourages new business owners to invest in the area, and creates jobs using the local workforce. PACE projects also have a positive impact on air quality, creating healthier, more livable neighborhoods.
What is an energy audit?
An energy audit (ASHRAE Level 2) is required to qualify for PACE financing. The audit identifies potential energy efficiency improvements for the property.
Who provides energy audits?
Contact an energy consultant.
Commercial PACE Benefits:
- Off balance sheet Financing
- Long-term and fixed-rate financing
- Loan is tied to a special assessment on the property rather than borrower’s credit
- Potential for energy savings to pay for upgrades
- Up to 100% financing of PACE eligible investments
- Special assessment may be tenant pass through
- Extend building’s life and increase value
Eligible PACE Users:
Office
Commercial
Manufacturing
Educational
Mixed-Use
Non-Profit
Logistics
Government
Healthcare
Institutional
Eligible Projects:
Many types of energy-saving technology may be financed. Through an ASHRAE Level 2 energy audit, a certified contractor or engineer will identify opportunities for potential energy saving improvements. Common examples include LED lighting, HVAC, air filtration, energy management systems, and roofing.
Heating and Cooling:
- High Efficiency HVAC
- Building Envelope – including “Cool Roofs”
- Steam Systems – Heat and Industrial Usage – Boilers
- Compressed Air
- Refrigeration Systems
- Solar Hot Water Heaters
- Ground Source Heat Pumps – Geothermal HVAC
- District Heating and Cooling Systems
Electricity Improvements
- LED Lighting
- Energy Management Systems and Controls – including metering
- Waste Energy Recovery: Power Generation, Absorption Chillers, Process Reviews
- Fuel Cells
- Renewable Power Generation: Methane Gas, Biomass, Wind, Solar PV
- Combined Heat and Power Systems – Microturbines – Cogeneration
- Electrical Distribution – Power Factor Correction, Transformer Replacement
- Water Conservation Measures or Reduced Flow – (must be able to calculate accompanying energy savings)
PACE Financing Lenders
Contact a PACE Lender active in the Columbus Region or contact the community representative for the community in which your property is located Commercial lenders that have financed PACE loans in the Columbus Region.
Center Bank,
744 State Route 28,
Milford, OH, 45150
CleanFund Commercial PACE
2330 Marinship Way – Suite 100
Sausalito, CA, 94965
(415) 360-9239
Columbus-Franklin County Finance Authority
300 Spruce Street – Suite 220
Columbus, Ohio 43215
614-427-0394
phuddle@Columbusfinance.org
Cuyahoga River Capital
12520 Edgewater Drive – Suite 501,
Cleveland, OH, 44114
(440) 409-2039
Greenworks Lending, LLC
28 Thorndale Circle, Third Floor
Darien, CT, 06820
Christopher.Ellis@nuveen.com
(614)967-4777
Imperial Ridge Real Estate Capital
1035 Pearl Street, Ste. 419
Boulder, CO, 80302
Phone Number Needed
ORIX Public Finance, LLC
1717 Main Street - Suite 1100
Dallas, TX, 75201
(214) 237-2225
PACE Equity LLC
731 North Jackson Street - Suite 420
Milwaukee, WI, 53202
(567) 686-7636
Petros PACE Finance, LLC
300 West 6th Street – Suite 1540
Austin, Texas, 78701
(832) 489-2788
Twain Financial Partners,
2200 Washington Avenue
St. Louis, MO, 63103
Phone Number Needed
Case Studies
PNC Plaza
PNC Plaza is a 24-story building on Capital Square in Downtown Columbus. The Finance Authority was able to help the building owners finance energy efficiency improvements within the high rise, upgrades that will save the company $199,000 a year. The financing was essential to reduce PNC’s expenses.
Lender: Columbus-Franklin County Finance Authority
Wasserstrom
Wasserstrom Co. upgraded HVAC,lighting, and solar to its new headquarters in Whitehall. With $1.2 million in PACE, Wasserstrom will now see $109,000 in annual energy savings and its solar array produces approximately 95,000 kilowatt-hours of energy annually.
Lender: Columbus-Franklin County Finance Authority
300 Spruce Street
The Daimler Group utilized PACE to upgrade their 300 Spruce Street office building in the Arena District of downtown Columbus. Between investments in a building automation system and new lighting, the owner is expected to save over $68,000 annually in energy costs.
Lender: Columbus-Franklin County Finance Authority