Newsletter: August 31, 2016
Overcoming Solar Project Barriers with Commercial PACE
Renewable energy, solar in particular, has enormous potential in Los Angeles County. However, there are barriers preventing property owners from moving forward with their solar projects. Commercial PACE may be the solution in resolving these market barriers:
 
Barrier: Lack of access to capital
Resolution: Unlike traditional financing, qualification for Commercial PACE financing is based on the property value, not the business' credit. As a result, more property owners qualify for Commercial PACE, especially non-profits.
 
Barrier: Split-incentive issue (investment made by the owner, but the financial benefits accrue to the tenants)
Resolution: The cost of Commercial PACE financing, and the benefits generated can be shared with tenant under more lease forms.
 
Barrier: Return on investment
Resolution:  Commercial PACE allows financing projects over a longer term, making more projects cash flow positive. Lower rates may also be available because PACE assessments are more secure than traditional loans.

To learn more about the benefits of Commercial PACE, visit pace.lacounty.gov
Local Solar Case Study: Office/Warehouse Facility
  • Commercial PACE Financing Administrator: 
  • Project Type: Office/Warehouse/Distribution Services Facility
  • Project Size: 32,612 square foot 
  • Project Development: 77.74f kW rooftop-mount solar PV array
  • Project Financing: $265,458 20-year PACE assessment
  • Project Goals: 
    • Reduce energy costs
    • Take advantage of tax incentives and rebates
    • Decrease the building's operating expenses
  • Project Savings: 
    •  Projected savings over the useful life of the solar PV is $115,009, including $22,732 year 1 savings.
  • Project Success: 
    • With the Federal Investment Tax Credit, MACRS and interest expense, the customer's year 1 cash flow increase was $108,999. 
To learn more about this case study, please contact Figtree Financing at ( 877) 577-7373.
Questions: We're always happy to help.

Contact us at  info@lapace.org  or (877) 785-2237.

Visit pace.lacounty.gov for more information.