Property assessed clean energy (PACE) financing is poised to provide more Wisconsin commercial property owners and developers with the means to finance energy-efficient improvements. PACE financing is an important tool for property owners looking to update aging building infrastructure, engage in adaptive reuse of existing buildings, construct new, energy-efficient buildings or install energy-generating equipment.
PACE financing involves a loan made by a private lender to a property owner for purposes of making energy-efficient improvements, the payments for which are collected by a taxing authority as a special charge on the real property tax bill for the improved property. PACE financing in Wisconsin is authorized by Wisconsin Statutes section 66.0627. This statute authorizes taxing authorities to collect PACE charges by entering into an agreement with a private lender and a property owner that obligates the taxing authority to collect the payments for the private lender. Before participating in PACE financing, a taxing authority must enact, by ordinance or otherwise, requirements for the approval and collection of PACE charges. Read more.