New Financing Option for Multifamily Property Owners
The Texas PACE program (Property Assessed Clean Energy), enables multifamily property owners to obtain affordable, long-term financing covering up to 100 percent of the cost for energy efficiency, water conservation, and on site generation technologies.
PACE secures private financing for a term as long as the projected useful life of the improvements, resulting in utility cost savings that exceed the amount of the repayment. You can modernize your facility without fear of over-investment because if you sell the facility, the PACE loan repayment obligation transfers with the property to the new owner.
THE FINANCIAL IMPACT OF TX-PACE
This example compares self-funding and conventional funding with PACE financing:
- Project involves a $2.5M 1.3MW CHP system
- Annual net savings of $473,000 (5.3 yrs simple payback)
- The project does not pass the company’s hurdle rate for investment in energy efficiency (i.e. the ROI is probably not high enough)
- Conventional Funding for 5 years at 4.0% (20% down payment)
- PACE funding available for 20 years at 6.0%.
- Energy prices held constant. NPV discount rate at 8%.
Compare financing options with the financial comparison calculator.