New York Times staff writer Joe Goss writes about the Property Assessed Clean Energy (PACE) financing option, which operates like a loan that can help developers pay for high-cost requirements in new green, energy-efficient buildings. The PACE loan is lower cost, has fixed interest rates, and gives developers 20-30 years rather than the more typical 3 to 5.
Developers, designers, and building owners are becoming more interested in PACE loans as cities create new policies to combat the effects of climate change, usually by requiring buildings to curb their greenhouse gas emissions. Originally created to finance green upgrades, PACE loans also encourage building owners to think about refitting old and existing buildings as well as constructing new ones. By offering this kind of safe, secure, and relatively affordable loan, PACE demonstrates that both investors and owners should be valuing green construction and energy-efficient practices.