What Happened?
Miami teamed up with six municipalities in Miami-Dade County to launch the Clean Energy Green Corridor, which qualified to be a Property Assessed Clean Energy Program (PACE). The PACE status enables the program to provide 100 percent financing with zero upfront costs to property owners. The public-private partnership has already received more than $20 million in applications from property owners looking for a more affordable route to improving their homes and businesses.
The Goal
Because the public-private partnership was deemed a PACE program, the participating municipalities in the Clean Energy Green Corridor can allocate sustainable energy project loans to property owners involved in the efforts. Commercial and multi-family properties can receive financing aid for various upgrades including:
- Hurricane protection
- Energy efficiency
- Renewable energy projects
As a result of retrofitting or upgrading the properties, owners may enjoy lower insurance and energy bills, boosted property values and safer, more comfortable living situations. The loans provided by local governments come with a fixed interest rate that can be reimbursed through annual property tax bill assessments for up to 20 years.
Combined Effort
While the local governments are involved in administering the program to local property owners, commercial entities play a major role in providing the necessary capital, manpower and resources to get the effort off and running smoothly. Ygrene energy Fund Florida, for example, offers financing options for its energy districts enabling property owners to obtain necessary loans when lending is tight.
While under the supervision of local government staff, Ygrene representatives cover the costs of the projects to reduce burdens on taxpayers while encouraging restoration efforts. Costs Ygrene would be held accountable for include:
- District implementation
- Staffing
- Marketing
- Financing
Because the program involves the private and public sector, individual property owners enjoy quick returns on investment, while the community as a whole benefits from more sustainable economic and environmental upgrades.
Keep With The PACE
PACE has established a presence in 30 states across the country and is focused on making restoration projects more affordable, financing options more accessible and economic improvements more permanent. The PACE model eliminates upfront costs for participants, creates new jobs in the private sector and reduces energy consumption throughout the community. When opting for project financing through PACE, property owners can take advantage of low-cost, long-term plans that help build strong credit while building up the value of their buildings as an investment for the future.
When adding a PACE effort at the local level, four main steps must be completed:
- Local government must launch a PACE assessment
- Building owners must evaluate their projects so the end result demonstrates a drastic cut in energy consumption and cost
- Local governments must include financing and assessments into the tax roll
- Property owners must agree to, and abide by, a repayment plan through assessments for up to 20 years
Also important to most local PACE projects is a municipality overarching goal to reduce the community’s energy consumption, a specified area where restoration and retrofitting projects will take place and a financing strategy to make it easier for residents to participate and increase property value.
Keep It Green To Save Green
Gov1 has tracked other energy-related strategies to cut costs and improve sustainability including urban farming efforts and self-sustaining structures.