Download - Power Generation Week 2016
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PACE FinancingA Paradigm Shift in Funding Energy
Efficiency & Renewable EnergyProjects in the US and Beyond
"An Energy Solutions Company"
Scott Ringlein President & Founding Partner
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Why?
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TraditionalIndustrialBarriers!
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LimitedCapital
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Financial
Hurdles
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Long Payback
Poor ROI
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What if….
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You had access to capital….
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There were no financial hurdles….
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Reduce your energy costs….
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Improve company finacials….
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To GoodTo Be True?
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PACEProperty Assessed
Clean EnergyFinancing
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What is PACE?
EnergyEfficiency Conservation
Energy Water Renewable
Non RecourseFinancing
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What is PACE?Voluntary
Property Tax Assessment
PropertyImprovement
Financing Model
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What is PACE?State Law
AdoptedLocally
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What is PACE?
Long Term
Repaid as Property Tax
Fixed Rate
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What is PACE?
Includes Maintenance & EOL Costs
Savings > Cost
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Originated in California in 2009Adopted in 32 U.S. States & DCExpanded Into Other Countries
Where is PACE?
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What Projects Qualify? Facility Upgrades New Construction Process Improvements Refinancing of
Prior Projects Financing a PPA
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What Technologies Qualify?
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With some exceptions….
If an energy savings can be calculated, it will
most likely qualify….but….
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Bundle High Energy & Low Energy Efficient
Solutions….
To Equalize Payback Periods
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Who Funds PACE?Varies State to State Bonds Self Funding Private Equity Traditional Funding
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How Much is Available?Typically 20% - 30%
PACE Fair Market Value (FMV) Property Value Loan to Value (LTV) Annual Energy Spend % of Value by Lender % of Value by PACE District
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Who Qualifies for PACE?
Buildings in PACE Districts
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Who Qualifies for PACE?Although varies by state…..
For profit, non profit & Government owned buildings may
qualify
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Who Qualifies for PACE?
Business is in Good Standing
Not Delinquent on Mortgage
or Property Tax
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Who Qualifies for PACE?Although varies by lender
and PACE District…..
Total LTV <80%
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So Why Use PACE?
Non Recourse No Down Payment 100% of Costs Covered
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So Why Use PACE?
Property Assumes Debt PACE Note Transfers @ Sale
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So Why Use PACE?
Increases Property Value Real Property Not Personal
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So Why Use PACE?
Long Term ~ 15-25 Yrs
Fixed Interest Rate
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So Why Use PACE?
Expense vs. Debt No Affect on Credit No Affect on Future Debt
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So Why Use PACE?
No Affect on Incentives No Affect on Tax Credits Consult on Depreciation
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Does It
Really Work?
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Success of PACE
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PACE Resources?
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"An Energy Solutions Company"