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New Solar Financing Option for Commercial Property Owners in the Houston Metro Area.

Would you like to make improvements to your commercial or industrial property that create a positive cash flow from day one? You can do it with PACE financing.Churches and other non-profits also qualify.

What is the PACE Program?

  1. PACE is an acronym for Property Assessed Clean Energy. Cities and counties in Texas are now authorized to work with private lenders and property owners in the financing of qualified property improvements.
  2. Financing through PACE enables owners of commercial and industrial properties to obtain low cost, long term, $0 down financing for for property improvements like solar power systems, water conservation measures, and energy-efficiency enhancements.
  3. The annual repayment of the loan is done with a line item on the annual property tax bill called an Annual Assessment.

What are the Advantages of PACE financing?

  1. Cash Flow Positive: The term of the loan is long enough such that the utility savings provided by the building improvements are greater than the cost required to finance them.
  2. The Loan Stays with the Improvements: An owner does not have to pay off the loan even if the owner later decides to sell the property. The loan assessment stays with the property (and the improvements).
  3. The Tenants who benefit from Lower Utility Bills Pay the Cost: Since a PACE loan repayment is actually a tax assessment, the cost of the improvements can most often be passed on to the tenants who in turn benefit from lower utility costs.
  4. Improved Property Values: Owners and Lenders prefer to continuously maintain or improve their property.
  5. Only the Assessment Due is Ahead of Existing Lenders: While the property receives the full value of the investment and the future cash flows, only the assessments due are ahead of the existing lender’s position. Furthermore, the assessment loan cannot be accelerated.

Other Benefits

  1. Federal Investment Tax Credit: Commercial property owners remain eligible for the 30% Federal Investment tax credit with PACE financing.
  2. Depreciation: Improvements made to commercial properties remain eligible for depreciation with PACE financing.

Contact SolarACPV for more details.

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