What is PACE?
Property Assessed Clean Energy (PACE) is an innovative way to finance energy efficiency and renewable energy upgrades to buildings. Interested property owners evaluate measures that achieve energy savings and receive 100% financing, repaid as a property tax assessment for up to 20 years. The assessment mechanism has been used nation-wide 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.
In Los Angeles County, Property Assessed Clean Energy (PACE) financing is available to commercial, industrial and multi-family property owners to pay for building improvements that save energy or create renewable energy onsite. The Hilton Los Angeles/Universal City took advantage of this fixed rate, 100-percent financing to fund $7 million worth of sustainable upgrades. The Hilton project is the largest commercial PACE project in the US, over twice the size of two projects completed this past year at just over $3 million each.
The Hilton project will result in an annual energy savings of $800,000 and water savings of $28,000, conserving more than 2.8 million gallons of water. This comprehensive retrofit includes energy efficiency, glass installations and new LED lighting, which is expected to reduce energy consumption by 50 percent. Additionally, 500 low-flow shower heads will be installed and 250 bathtubs with showers replaced as part of the water conservation upgrade to save the equivalent of one month of the property's existing water usage. Additionally, older HVAC systems were replaced with new energy-efficient ones.