What is PACE?
PACE, an acronym for Property Assessed Clean Energy, a model that finances properties for energy efficiency improvements, renewable energy solutions and water conservation. This innovative financing method is committed to boost the economy, implement sustainable and environmental-friendly energy generation and resource conservation procedures.
The program is designed for both residential and commercial properties with no-upfront cost. Property owners can get 100% of the project financed and pay it back within 10-20 years as an additional property tax. It is claimed that around $4 billion is generated through PACE financing for energy efficient solutions. A standard PACE program includes replacement of heating and/or cooling systems, insulation and wall sealings, windows and door alteration, HVAC upgrades and water storage tanks.
How Does METCO PACE Financing Help?
METCO PACE system offers consumer-friendly financial terms to commercial and residential property owners. The method is designed to make investment in the production of clean energy. Once the possession of the property is changed, the liability of loan payment is transferred to the new owner. The features of METCO PACE Financing programs are discussed below:
Key Characteristics of PACE Financing:
1. Little upfront cost
2. Payable time of 10-20 years
3. The loan is secured with the property rather than the owner’s credit score
4. The loan is transferable to the next owner when the property is sold
5. Finance the project on property tax for low-cost payment
Benefits of PACE Financing
The payment method for PACE initiative is easy and affordable as it is offered on a small upfront cost and long-term return policies.
Smooth Cash Flow
By keeping the monthly installments low, the utility savings exceed thus ensuring smooth cash flow.
The PACE finance program is specifically designed to support efficient energy upgradation and water conservation
Since the debt is given and tied to the property instead of the owner, it can be transferred to the next owner upon sale.
What Does METCO Do?
METCO strives to improve energy efficiency and has saved up to 23,000 KV of energy since its inception. For upgrading the energy generation system, the company finances commercial and residential property owners with PACE programs. The initiative support green energy alternatives such as solar panel and HVAC set up and upgrade of heating and cooling systems. Insulation of walls, roof, and floor can also be financed through PACE programs.