Commercial PACE Financing
PACE stands for Property-Assessed Clean Energy Financing. Property Assessed Clean Energy (PACE) is an innovative way to finance commercial building upgrades. Qualified properties can use C-PACE to receive lower-cost, long-term flexible financing for up to 100 percent of eligible property improvements to be repaid as a surcharge on the property tax for up to 20 years.
Eligible improvements include energy efficiency and renewable energy improvements, as well as climate resiliency, climate adaptation, water conservation, environmental health and safety upgrades. Existing buildings can use C-PACE for planned renovations, as well as completed renovations that occurred within the last 12 months. C-PACE can be used for new construction projects as well.
Collecting the surcharge on a property tax bill, the model on which PACE is built, has been used nationwide for decades to access low-cost, long-term capital to finance improvements to private property that meet a public purpose. By eliminating upfront costs, providing low-cost long-term financing, and making it easy for building owners to transfer repayment obligations to a new owner upon sale, PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in our nation’s buildings.
Montgomery County’s Commercial PACE Program
In May 2014, the Maryland General Assembly passed a law allowing local jurisdictions to implement Commercial PACE programs. On March 31, 2015, Council Bill 6-15, Commercial Property Assessed Clean Energy Program (PACE), was adopted, and later amended by Bills 18-16, 33-18, 7-19, and 46-21. For additional information on this history of this program, please visit the Department of Finance’s PACE webpage.
The C-PACE Financing program that Montgomery County developed is only applicable to commercial properties - not residential properties.
C-PACE Annual Reports
As required by the County’s C-PACE law, annual reports are prepared for the County Council:
MC-PACE Program Administered by Montgomery County Green Bank
In early 2021, Montgomery County was proud to select the Montgomery County Green Bank to administer the county’s C-PACE financing program. Read the press announcement.
Building owners, capital providers, and contractors interested in Montgomery County’s C-PACE program can contact the Montgomery County Green Bank to learn more about getting started.