As 2016 draws to a close, we wanted to take a moment to review the continued emergence of PACE financing both in the Greater Cincinnati region and across the United States. The GC-PACE team has been busy throughout the year working with property owners, contractors, local governments and commercial real estate management companies to fund energy efficiency and renewable energy projects. If you are interested in learning more about GC-PACE, visit our website or contact Chris Jones.
According to the national non-profit PACENation, the total value of energy efficiency and renewable energy projects financed using PACE is expected to surpass the $3 billion mark by the end of 2016! This includes projects completed on residential and commercial properties and demonstrates the significant penetration of PACE financing in the real estate market.
Here are just some of the year’s PACE financing highlights:
- PACE legislation was passed in Massachusetts and Nebraska. PACE financing is now active in 33 states plus the District of Columbia.
- The inaugural PACENation summit was held in late February. Close to 400 individuals representing over 200 organizations were in attendance. The 2017 PACENation Summit will be held February 13-15 in Denver.
- The American Council for an Energy-Efficiency Economy (ACEEE), a national nonprofit working to advance energy efficiency, added PACE financing as one of the criteria included in its annual State Energy Efficiency Scorecard
PACE in Ohio and Kentucky:
The demand for PACE in Ohio and Kentucky continued to grow during 2016. Several municipalities authorized the creation of PACE districts and over $3 million in energy efficiency and renewable energy projects were financed using PACE.
- PACE Districts were created in Blue Ash and Norwood in Ohio and Bellevue and Newport in Kentucky. The GC-PACE team is in discussions with several other local governments and anticipates the creation of a number of new PACE Districts in 2017.
- Through a contract with the Kentucky Department of Energy Development and Independence, GC-PACE developed a “how to” handbook to help local governments in Kentucky understand how to implement PACE.
- Over 30 new contractors were added to the list of GC-PACE registered contractors.
- GC-PACE conducted a variety of outreach events to help advance the local PACE market.
- Hosted or participated in over 40 events
- Provided PACE 201 training to over 100 contractors
- Presented a PACE 301 seminar with the UC Real Estate Roundtable
- Sponsored a seminar by nationally recognized sales expert Mark Jewell
PACE in Ohio:
First projects completed in Blue Ash
The owner of three properties in the City of Blue Ash recently used PACE financing to make energy efficiency improvements. Working with Process Construction and Riverside Electric, both of which are GC-PACE registered contractors, the owner elected to install LED lighting and occupancy controls to reduce energy consumption.
GC-PACE worked with the owner and the City of Blue Ash to create the PACE district and obtain financing. The final projects totaled $325,000 and were financed over 18 years. By using PACE, the property owner is able to pass the costs of the upgrades as well as the energy savings along to the tenants.
First projects completed in Norwood
The owners of Central Parke, a group of Class A office buildings located in Norwood, Ohio were interested in making energy efficiency improvements to the properties. They turned to Process Construction, a GC-PACE registered contractor, for help. Process Construction recommended a number of different measures including replacing boilers and cooling towers, installing new heat pumps, and updating building automation systems.
GC-PACE worked with the property owners and the City of Norwood to create the PACE district so the project could be financed over a longer term. The final project totaled $1.9 million and was financed over 19 years using PACE.
If you are interested in learning more about PACE financing, please email or call Chris Jones at 513.621.4232 ext. 121.