Earlier this spring Senate Bill 234 was signed into law establishing Pennsylvania’s Property Assessed Clean Energy (PACE) program. The program is designed to catalyze financing for energy efficiency, renewable energy, and water conservation upgrades to commercial and industrial properties. Local governments have the option to participate in the program and collect assessments on clean energy upgrades to commercial and industrial properties.
Once a municipality decides to participate in the program, private lenders provide financing to building owners for energy-efficiency and clean energy technology upgrades. Then the local community simply collects an assessment on the improved building over a period of years and remits the payment to the lender to pay for the retrofit. In many cases, these upgrades can save the building owner more than the cost of the assessment, meaning they begin saving money immediately.
Through this new legislation PA joins 33 states plus the District of Columbia that authorize PACE financing for clean energy and energy efficiency projects; this includes a diverse group of states such as Alabama, California, Georgia, North Carolina, New Jersey, New York, Ohio, and Texas.
For more on the PACE program, click here.