Property Assessed Clean Energy (PACE) Financing
Commercial Office, Hospital, Hotel, Industrial, Institutional, Multifamily Affordable Housing, Multifamily Market Rate Housing, Mixed Use
Electricity, Gas, Solar
Loan (affixed to the property through property taxes) with 20 year fixed interest term
Commercial - Missouri Energy Initiative, a Missouri 501c3. MEI's open market commercial program provides more than 20 capital providers to bid on your project from $5,000>$50MM. Find a list of the approved Capital providers on the Set the PACE St. Louis website.
Set the PACE St. Louis (Property Assessed Clean Energy (PACE) Financing)
St. Louis PACE offers affordable, long-term, 100% financing for building upgrades, repaid through the property tax bill.
Applicable building size
Building owners, property managers, investors, or project developers that have projects that will save the property energy and money can utilize PACE. PACE, as an ad-valorem-tax can be treated as an off-book financing option that provides up to 20 year fixed-interest financing for their building upgrades or ECMs added to their new construction projects. Any measure that directly reduces utility costs or adds renewable-generating capacity is eligible. In addition, St. Louis PACE can finance measures that are substantially related to or necessary for the installation of these energy and water conservation measures.
Submit project interest form Set the PACE St. Louis website and MEI will connect you to capital providers interested in your project.
Advantages. Since PACE is tied to the property, not the borrower, in most cases the payment obligation simply transfers to a new owner upon sale of the property. Fixed interest rates of up to 20 years. First payment not due for 6-36 months. Is ad-valorem tax and thus impact credit and debt differently, but can still be used with non-profit, non-taxpaying entities. Program provides competitive bidding of capital providers, reducing the cost to the borrower. Directly tied to reducing utility bills, improving cash flow, lowering capital costs, extending capital budgets, increasing property values, and making your building or project more sustainable.
Disadvantages. Requires mortgage lender approval. Requires Clean Energy District approval, an appraisal and likely an energy audit or analysis (which can be included in PACE Financing)