As part of Energy Upgrade California, owners of non-residential commercial properties in Los Angeles County have access to an innovative financing mechanism to fund up to 100% of the cost of building performance upgrades—Property Assessed Clean Energy (or PACE) financing.
Investment in energy and water efficiency is an intelligent business decision. Building performance upgrades bring multiple benefits:
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Lower operating costs
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Improve occupants’ comfort
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Hedge against utility price increases
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Reduce negative exposure to possible regulation
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Help the environment
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Boost property values
Why PACE?
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Funding for up to 100% of installed project costs
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Lower financing rates than other products in the market
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Longer financing terms than would otherwise be possible
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Enables projects to be cash flow positive in Year 1
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May allow for favorable accounting treatment
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Allows for equitable sharing of costs and savings with current tenants, and future owners
For more information visit http://www.cleanfund.com/
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Building Performance Tracking is the process of analyzing a building’s operations and energy consumption over time to identify anomalies and areas for potential improvement.
Measurement and Verification(M&V) is a process of using actual measurement, calculation, and/or modeling to reliably determine actual energy/utility savings achieved within a facility by an energy management, energy conservation, or energy efficiency project.
The PACE structure was enacted into California State law in 2008, to help property owners fund efficiency upgrades and onsite clean power generation projects. Under PACE property owners can negotiate project-specific financing terms with the investor(s) of their choice, and repay the cost of the upgrade over time through a voluntary contractual assessment on the property tax bill. PACE can be used to fund a range of building performance upgrades, from high-efficiency lighting retrofits, to advanced controls systems, to installations of fuel cells and solar photovoltaic power generation.
And because PACE assessments are fully secured through contractual assessments, capital providers have the security to offer financing at lower rates and over longer periods of time than has been possible until now. This combination of lower rates and longer terms improves the economics of deeper energy efficiency upgrades and on-site power generation projects, and allows for positive cash-flow from day one.
PACE is voluntary, not mandated by the government. It provides long term funding from private capital markets at low cost, and requires no subsidies. PACE raises property values by making buildings less expensive to light, heat, and cool and enjoys broad-based support nationwide. PACE enabling legislation has been adopted by 24 states in just 24 months, and there are dozens of programs in operation and in development around the country today.
For more information visit http://www.cleanfund.com/
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