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What is PACE Financing?


PACE financing is transforming communities by enabling property owners to make their homes and businesses more efficient and resilient.

PACE pays for 100% of the hard and soft costs of completing an energy efficiency, renewable energy, or resiliency project.

PACE is repaid on the property tax bill over a period of up to 30 years, enabling longer payback periods that can be cash flow positive from day one.

PACE helps communities increase resilience to natural disasters, reduce carbon emissions, and meet climate change goals. PACE also generates significant local economic activity and job creation.


Download the PACE Basics one-pager


The challenge

Nearly half the energy we consume, and three quarters of the electricity we generate in the United States is used to heat, cool, light, and otherwise operate our buildings. Most of this energy is created by burning fossil fuel, so reducing its consumption in a meaningful way will depend on reducing energy use in buildings. A number of barriers have thus far limited wide-scale adoption of energy efficiency and renewable energy measures.

PACE financing is the solution

PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings. PACE financing solves the upfront cost barrier by providing 100% financing for project costs. Long-term repayment of up to 30 years makes longer payback projects immediately cash flow positive and buildings more valuable. For contractors, PACE makes it easier to close a larger sale.

How PACE Works



States pass enabling laws that allow local governments to offer PACE financing to building owners. PACE is completely voluntary.



Qualified PACE service providers help building owners select cost-effective projects that make good business sense.



PACE programs process applications, qualify projects and provide or arrange financing. An assessment or charge is added to the property’s tax roll once the funds are disbursed.


Eligible Improvements

Lighting upgrades

HVAC systems

Building envelope & insulation

Automatic building controls

Variable frequency drives

Boilers & hot water heating

Roof replacement

Water conservation

Solar PV

Solar thermal


EV charging stations

Seismic resiliency

Hurricane resiliency

Stormwater management

Fire resiliency

Eligibility may vary by state and municipality, so we recommend that you contact your local PACE program for a list of eligible properties and improvements.

View project case studies

Benefits of PACE

Grow your bottom line and increase your building’s value

Commercial building owners owners choose PACE financing because it:

  • Covers 100% up front financing, including project development costs
  • Provides long-term funding that can result in immediate benefit to cash flow
  • Solves split incentives by passing payments to tenants
  • Preserves working capital and can can improve property NOI
  • Increases building value and marketability
  • Offers a range of accounting treatments

Many C-PACE programs across the U.S. now offer financing for new construction and gut rehab projects in addition to retrofits. Check the PACE map to find a program near you.

Download the one-pager, PACE for Commercial Building Owners.

Reduce your energy bills and make your home more efficient and resilient

Energy efficiency is the least expensive energy we can buy. Homeowners are using PACE to upgrade their homes with energy efficiency, renewable energy, and resiliency to hurricanes and fires. PACE in an effective financing tool because it:

  • Covers 100% of a home upgrade project
  • Long financing terms may result in savings from day one
  • Can help lower electric, gas and water utility bills
  • Can be used to make your home more resilient to hurricanes and fires (depends on program offerings)
  • Results in more comfortable buildings and improved indoor air quality
  • Lowers carbon footprint and improves the environment

Check the PACE map to find a program near you.

Economic development and job creation through clean energy

PACE is an economic development engine that’s energized local economies from D.C. to L.A. and thousands of cities and towns in between. PACE makes it possible for owners of residential, commercial, industrial, multifamily, and nonprofit properties to obtain low-cost, long-term financing for energy efficiency, water conservation, renewable energy projects, and more.

  • Creates economic stimulus (EcoNorthwest estimated that $1 million PACE investment generates $2.5 million in economic activity)
  • Creates jobs (USC researchers estimated that in one PACE program, $1 million investment in PACE created approximately 12 jobs)
  • Helps meet state and local goals for emissions reduction, economic development, and resiliency
  • Can be no/low cost to the municipality, and uses private financing dollars

Download the one-pager, Working with Community Leaders.

Where is PACE Available?

View the PACE program map

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Summit 2024

June 12-13
Nashville, Tennessee

Join hundreds other PACE professionals for two days of extensive educational and networking opportunities at the premier global PACE event!