ABSTRACT
The process of owner-arranged Property Assessed Clean Energy (PACE) financing begins when the building owner engages an energy service company (ESCO) to audit the property and develop a retrofit plan. Moreover, use of the PACE financing structure would allow an energy services agreement (ESA) provider to pursue deeper energy retrofits within a much larger market, i.e., the many commercial buildings where owners lack investment-grade credit ratings. Regardless of whether PACE financing is available, establishing a federal or local loan guarantee program to cover credit risk can leverage public funding and ramp-up large scale private investment in the CRE sector. The PACE tax lien financing, ESCO direct financing or third party financing using the PACE structure, ESA provider financing through private parties or using PACE financing, and bank financing through a PACE financing structure. The ESA provider assumes ownership and maintenance responsibility for project assets over the lifetime of the project.
