PACE Financing for Commercial Buildings to Reach $2.5 Billion Annually by 2015, According to Pike Research

In the commercial building sector, energy efficiency retrofits are a highly effective approach for reducing energy consumption and costs while also mitigating greenhouse gas (GHG) emissions. However, the energy retrofit market in privately owned buildings is limited by capital constraints, short planning horizons for property owners, and split incentives between owners and tenants. Property Assessed Clean Energy (PACE) financing is emerging as an important tool to overcome these barriers in the market for commercial building retrofits. PACE programs create voluntary tax liens on private property, to secure financing for retrofits. The liens are paid off over 5 to 20 years, usually on the property tax bills. SEE MORE