The New York Times published an article this week exploring how PACE financing is increasingly being used in cities across the country to install energy efficiency and renewable energy measures to meet green building requirements.
The article cites PACENation, saying that from 2016 through 2018, the PACE model was used to finance $660 million of sustainable building improvements, compared only $208 million in the six previous years.
The PACE market is expanding as awareness and demand grow. So far, 36 states and the District of Columbia have passed PACE-enabling legislation to allow the use of PACE financing for commercial properties.
Jessica Bailey, chief executive and co-founder of Greenworks Lending shared her insights, saying“states and cities are putting a heavy burden on commercial real estate owners, who see these ambitious climate targets as unfunded mandates...So PACE is a carrot to the stick that gives property owners a way to finance more energy-efficient systems.”
PACE’s original mission was to finance green upgrades in existing buildings. But developers are increasingly using the programs to fund new construction and the gutting and renovation of old buildings. Lenders expect this activity to accelerate in the coming months, especially in light of PACE’s flexibility and affordability.
Read the full article here.