The program lets you agree to a betterment assessment and lien on your property, sufficient to repay the financing extended by a private capital provider. If the property is sold before the financing has been repaid, the assessment stays and is transferred to subsequent property owners.
PACE enables owners to use energy savings to undertake more comprehensive energy upgrades with financing terms up to 20 years. If you want to make energy improvements to a building and are exploring ways to pay for them look no further than PACE Massachusetts.
Ways to use PACE Massachusetts
Commercial & Industrial
A 100,000 s/f commercial high-rise office building with outdated building systems and overdue capital expenditures needs modernizing in order to attract and retain tenants. PACE Massachusetts can be used to replace more costly mezzanine or equity financing that is being considered for the project’s capital stack. With a 20-year term – and no upfront costs – much-needed upgrades such as new chillers, LED lighting, and high-efficiency HVAC systems can pay for themselves over time through the energy savings, add to the building’s value, and improve comfort for tenants.
Multifamily Housing 5+
An apartment building with 20 rental units has outdated lighting, heating, and cooling systems and needs repairs. PACE Massachusetts will provide financing with competitive interest rates and a 20-year term to install new solar panels and a new roof, high-efficiency heating system, and LED lighting and enable an owner to use the savings from the energy improvements and tax credits to offset the repayment of a PACE financing via the annual betterment.
Manufacturers
A manufacturing company wants to refinance a recently completed renewable energy project. The owner can use PACE Massachusetts to replace funds that originally constructed the project, extending the repayment term from seven to 20 years and generating positive cash flow.
Frequently Asked Questions
What’s the PACE Massachusetts advantage?
PACE Massachusetts offers more flexibility than a direct loan, allowing you to undertake comprehensive energy upgrades with longer financing terms of up to 20 years without adding new debt to your balance sheet. Savings from the upgrades can be used to repay the betterment over time which can be collected quarterly, semi-annually or annually. Additionally, at property sale, the assessment and lien are transferred to future property owners, who also benefit from the installed upgrades and will realize energy savings.
Other benefits include:
- Accelerated job creation, business growth, and environmental benefits for communities.
- Cash flow improvements and reduced credit risk for capital providers.
- Environmental relief and progress towards Massachusetts clean-energy goals.
Who’s eligible?
Owners of commercial and industrial buildings, owners of multifamily properties with five-plus units, and nonprofit organizations that own buildings.
What projects qualify?
PACE Massachusetts is used to finance energy efficiency and renewable energy improvements such as boilers and furnaces, chillers, motors and drivers, lighting, solar panels, insulation, air sealing, geothermal, solar hot water, energy management systems, energy recovery, and redistribution systems. For a complete list, please see Guidelines/Appendix B and Appendix M.
How does the program work?
Interested property owners can submit a completed PACE Massachusetts application detailing the type of energy improvement project they want to undertake – and demonstrating that the energy savings from the project will be greater than the cost (a requirement of the program). Applicants should choose a capital provider such as a bank or a PACE lender, to fund the project and to help finalize the application package. MassDevelopment can assist property owners with identifying funding options. Contact pace@massdevelopment.com.
How do municipalities opt-in?
Individual municipalities may allow owners to participate in PACE by opting in by a majority vote of the city or town council or the board of selectmen, as appropriate. For more information on starting the municipal opt-in process and to obtain a copy of the PACE resolution model, please email pace@massdevelopment.com.
Communities that have adopted PACE Massachusetts
Acton | Agawam | Amesbury | Amherst | Ashburnham | Barnstable | Bellingham | Berlin | Beverly | Boston | Brockton | Brookline | Burlington | Cambridge | Chelsea | Chicopee | Clinton | Concord | Devens | Dudley | East Longmeadow | Easthampton | Easton | Erving | Fall River | Fitchburg | Franklin | Gardner | Gloucester | Grafton | Great Barrington | Greenfield | Hingham | Holyoke | Hudson | Lanesborough | Leicester | Lexington | Lowell | Ludlow | Lynn | Middleborough | Milton | Montague | New Bedford | Newton | North Adams | North Andover | Northampton | Norwood | Orange | Peabody | Pittsfield | Plymouth | Provincetown | Randolph | Rockland | Salem | Somerville | Southbridge | Springfield | Swansea | Taunton | Tyngsborough | Wakefield | Warren | Wellesley | Wellfleet | Wendell | Westborough | West Springfield | Weston | Winchendon | Woburn | Yarmouth
Access program guidelines and technical documentation
Guidelines
Technical Documentation Requirements
Savings to Investment (SIR) Calculator
Resources
We encourage you to contact MassDevelopment to discuss your interest in PACE Massachusetts. Our experienced staff can guide you through the process. Email pace@massdevelopment.com with your questions.
Capital Provider Information
PACE Massachusetts employs an open market, third party direct financing model that provides property owners the power to choose who will fund their project. It allows multiple capital providers to operate within the PACE Massachusetts program and allows property owners access to the different sources of funds that are available in the commercial PACE market.
PACE Massachusetts requires capital providers to register with MassDevelopment before financing PACE projects in Massachusetts. Entities interested in becoming a PACE Massachusetts registered capital provider should respond to the open Request for Information (RFI) for PACE Massachusetts Capital Providers. If a capital provider provides the required RFI information, they may be registered as an interested PACE Massachusetts capital provider. Registered capital providers may receive information regarding PACE Massachusetts project financing opportunities from property owners or MassDevelopment. Property owners may access a central registry of potential capital providers. The list of registered capital providers is maintained by MassDevelopment and available upon request to a property owner pursuing PACE financing.
Please note MassDevelopment makes no assurances or certifications about registered capital providers.