This Toolkit and Replication Guide features lessons learned and best practices for solar development for PACE financing for tax exempt organizations. It is intended for program designers and practitioners nationwide. Read the report now.
For community-based nonprofit organizations like affordable housing developers, faith-based institutions, and others, financing solar projects can be a challenge. To address this challenge, we explore in depth how securing solar Power Purchase Agreements (PPAs) with PACE financing may offer a particularly useful tool for nonprofit organizations. Read the report now.
Property Assessed Clean Energy offers a secure way to finance 100% of the cost of energy saving building improvements, like solar energy, using capital provided by local government or private lenders. Loans are repaid through a building owner’s property taxes over a period typically lasting twenty years. By the end of 2013, the cumulative value of projects financed via commercial property-assessed clean energy (PACE) reached nearly $60 million – almost five times the amount seen just two years prior.1
Nevertheless, the National Renewable Energy Laboratory estimates Commercial PACE is likely to attain only 5% of commercial solar financing over the next few years.2 Broader use of this financing mechanism is limited, in part, by the tax-exempt ownership structures of many property owners (e.g., non-profit affordable housing owners, educational institutions, and faith-based institutions), that creates weak security for project underwriting. PACE financing provides a critically needed tool for directly addressing these underwriting and access challenges for otherwise economically beneficial projects.
CivicPACE is supported by the U.S. Department of Energy Solar Energy Technologies Office.