Advantages of Property Assessed Clean Energy (PACE) Financing for Municipalities and Landlords, by Johnson Controls

File Type: Free Content, Article
Release Date: March 2013
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Many reports have demonstrated that energy efficiency pays for itself and that there is a significant investment opportunity in the building efficiency market. Yet many barriers impede investment in energy efficiency, and access to financing is consistently cited as the top barrier to action.  A collaborative study by the Johnson Controls Institute for Building Efficiency, PACENow, and the Urban Land Institute outline the advantages of PACE financing structures over other financing options, including:

  • Zero up-front cash investment
  • Immediate positive cash flow
  • Long-term financing (up to 20 years)
  • PACE assessment stays with the property upon sale
  • Ability to pass payments through to tenants
  • Low interest rates
  • Higher rents and greater long-term property value because of energy efficiency
  • Preservation of borrowing capacity through off-balance–sheet financing