PACE Massachusetts is Now Open
On July 28, 2020, MassDevelopment and the Massachusetts Department of Energy Resources announced that financing is now available through Property Assessed Clean Energy (PACE) Massachusetts to fund energy improvements on commercial and industrial buildings, and multifamily properties with five or more units, and buildings owned by nonprofits.
Read the full release.
Property Assessed Clean Energy (PACE) for commercial buildings is a new mechanism to finance energy improvements on commercial and industrial properties in Massachusetts. To finance improvements, a property owner agrees to a betterment assessment and lien on their property, which repays the financing. This approach enables owners to undertake more comprehensive energy upgrades with longer payback periods of up to 20 years. At property sale, the assessment stays with the property and is transferred to subsequent property owners.
Benefits of PACE
- Property owners: Advantageous, non-recourse, upfront, long term, potentially off-balance sheet financing that remains with the property if sold. Capital improvements could reduce operating costs and increase property values.
- Municipalities: Job creation, business growth, and environmental benefits associated with reducing energy consumption.
- Capital providers/Mortgage holders: Improved cash flow and reduced credit risk from lower operating costs via financing that cannot be accelerated. Capital improvements could also increase the collateral property value.
PACE in Massachusetts
Commercial Property Assessed Clean Energy was passed as part of the energy legislation signed by Governor Baker in August 2016. MassDevelopment and the Massachusetts Department of Energy Resources (DOER) will administer the PACE program. PACE program guidelines have been developed to detail the requirements of PACE Massachusetts financing.
Parties interested in accessing PACE Massachusetts should carefully review the guidelines and are urged to contact MassDevelopment staff to discuss any potential financing(s) before submitting an application.