The Lorain Port Authority has partnered with NOPEC to provide a PACE loan program to the city of Lorain and surrounding areas.
What is PACE?
PACE is a mechanism that allows property owners to finance energy efficiency and renewable energy improvements through assessments on their real property tax bills. This program is designed to meet the needs of owners by providing upfront capital to complete the improvements and provide stable, predictable payments over the term of the loan. This structure is called PACE, Property Assessed Clean Energy.
What are the benefits of using PACE loan financing?
There are a number of benefits to the borrower including:
- Can allow for zero up-front cash to make the investment
- Provides long-term, fixed-rate financing
- Assessments stay with the property, even if it’s sold during the loan term
- Preserves borrowing capacity through off-balance sheet financing
- Allows borrower to pass payments through to tenants
- Provides greater long-term property value and rental benefits
What types of projects are eligible?
Commercial properties are eligible for the PACE loan. Eligible projects include both energy-efficiency improvement and renewable energy projects.
Efficiency improvement examples include:
Renewable examples include:
- Solar-thermal water heating systems
- Biomass energy
- Gasification projects
How much is the loan?
The loan can range from $100,000 to $500,000. The loan term can range from 5 to 20 years. The term will depend on the amount being financed, the useful-life of the asset(s) financed and the projected savings from the improvements. The fixed interest rate of the loan can range from 2.5%-4%.
Who can qualify?
Any commercial property owner is eligible if the property is part of the NOPEC program. This include for-profit, non-profit, multi-family, retail, commercial, industrial and government properties. Eligibility requirements include:
- Property is in a NOPEC member community
- Energy Audit
If you are interested, or want to learn more about the PACE loan program, contact:
Tiffany McClelland: firstname.lastname@example.org