Property Assessed Clean Energy - A Paradigm Shift in Funding Energy Efficiency & Renewable Energy Projects in the US and Beyond

1. PACE Financing
A Paradigm Shift in Funding Energy Efficiency
& Renewable Energy
Projects in the US and Beyond
"An Energy Solutions Company"
Scott Ringlein
President & Founding Partner

5. Limited
Capital

6. Financial
Hurdles

7. Long Payback
Poor
ROI

8. What if….

9. You had access
to capital….

10. There were no
financial hurdles….

11. Reduce your
energy costs….

12. Improve
company
finacials….

13. To Good
To Be True?

14. PACE
Property Assessed
Clean Energy
Financing

15. What is PACE?
EnergyEfficiency Conservation
Energy Water Renewable
Non Recourse
Financing

16. What is PACE?
Voluntary
Property Tax
Assessment
Property
Improvement
Financing Model

17. What is PACE?
State Law
Adopted
Locally

18. What is PACE?
Long Term
Repaid as Property
Tax
Fixed Rate

19. What is PACE?
Includes Maintenance & EOL Costs
Savings > Cost

20. Originated in California in 2009
Adopted in 32 U.S. States & DC
Expanded Into Other Countries
Where is PACE?

21. What Projects Qualify?
 Facility Upgrades
 New Construction
 Process Improvements
 Refinancing of Prior
Projects
 Financing a PPA

22. hat Technologies Qualif

24. Bundle High Energy & Low Energy
Efficient Solutions….
To Equalize Payback Periods

25. Who Funds PACE?
Varies State to State
 Bonds
 Self Funding
 Private Equity
 Traditional Funding

26. How Much is Available?
Typically 20% - 30%
PACE Fair Market Value (FMV)
 Property Value
 Loan to Value (LTV)
 Annual Energy Spend
 % of Value by Lender
 % of Value by PACE District

27. Who Qualifies for PACE?
Buildings in PACE Districts

28. Who Qualifies for PACE?
Although varies by state…..
For profit, non profit & Government owned
buildings may qualify

29. Who Qualifies for PACE?
Business is in Good
Standing
Not Delinquent on
Mortgage or
Property Tax

30. Who Qualifies for PACE?
Although varies by lender
and PACE District…..
Total LTV <80%

31. So Why Use PACE?
 Non Recourse
 No Down Payment
 100% of Costs Covered

32. So Why Use PACE?
 Property Assumes Debt
 PACE Note Transfers @ Sale

33. So Why Use PACE?
 Increases Property Value
 Real Property Not Personal

34. So Why Use PACE?
 Long Term ~ 15-25 Yrs
 Fixed Interest Rate

35. So Why Use PACE?
 Expense vs. Debt
 No Affect on Credit
 No Affect on Future Debt

36. So Why Use PACE?
 No Affect on Incentives
 No Affect on Tax Credits
 Consult on Depreciation

37. Does It
Really Work?

38. Success of PACE

39. PACE Resources?

41. "An Energy Solutions Company"