Being Green Might Be Less Expensive Than You Think

| June 20, 2013 More

By Amanda Mathieu

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Property managers and owners know that the more energy efficient the building, the lower the utility costs and the greater the income. Further, energy efficient properties are good for the environment. But taking advantage of long-term gains takes near-term money. Given the high costs, few banks are willing to provide loans specifically for energy renovations.

Property Assessed Clean Energy (PACE) financing is a private and public sector method for raising capital that can be loaned to property owners to cover the cost of projects like solar panel installation, insulation retrofitting, heating systems upgrades or other investments that will make a building more efficient.

For a PACE program to be implemented, a state must pass special legislation under which its local governments, such as cities and counties, can launch or join a PACE district. Each district is then able to create district-specific guidelines regarding what property improvements they’ll finance. PACE financing can take two forms: municipal bonds or private loans.

After securing PACE financing, a building owner accepts a tax assessment on the property for up to twenty years and uses this special assessment to repay the loan. As of February 2013, sixteen Commercial PACE programs in seven states had been established. Additional states are contemplating PACE legislation as well.

Category: Property Management

Comments (3)

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  1. Lucy says:

    We actually actively look for homes which have gone green. We find people in the UK are looking to do their bit for the enviornemnt and so looking for these sort of homes.

  2. Nicholas says:

    Conserving Blog!
    I love going green. We need more efficiency in the energy world.

    We do PropertyManagement
    in St John’s

  3. Kevin says:

    Amanda, You are so right! Going green can be one of the single most modern investments a property manager can make. By doing so, not only are they ensuring the resale value of their property, but ensuring the longevity of the world around us. Thanks for writing about this!

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