PACE Loans Helping Businesses Invest In Renewable Energy And Conservation

From the Office of Communications: Baltimore County Executive Kevin Kamenetz announced that the County is moving forward with a program to help property and business owners more easily afford building energy improvements like energy-efficient HVAC and lighting upgrades, in addition to renewable energy projects like solar and geothermal. Yesterday evening, the Baltimore County Council approved the County’s PACE loan program, enabling property and business owners in the County to take advantage of Maryland’s Commercial Property Assessed Clean Energy (MD-PACE) program. MD-PACE is an innovative and affordable way for commercial building owners to pay for energy improvements. Through MD-PACE, commercial, industrial, and nonprofit properties use private capital to finance 100% of efficiency and renewable energy upgrades which are then repaid as a long-term surcharge on their real property tax bill, for terms up to 20 years.

This kind of voluntary surcharge added to a property’s tax bill is similar to a surcharge for a sewer or water line. This approach makes energy upgrades accessible, allowing owners to reduce energy and operational costs and improve overall the value of their buildings.

The County selected PACE Financial Servicing (PFS) to administer the program, coordinating with commercial property owners, lenders and contractors throughout the PACE loan approval process. Their services are provided at no cost to the County.“By instituting our PACE loan program, we are removing a major barrier for businesses that want to significantly cut their operating energy costs and reduce their carbon footprint,” said County Executive Kevin Kamenetz. “It’s another way that we are partnering with the private sector to create positive economic results and it’s another of our Clean Green County initiatives.” “This is a great real-world solution that helps businesses quickly improve their bottom line while having a positive effect on the environment,” said County Council Chair Vicki Almond.“This is a great real-world solution that helps businesses quickly improve their bottom line while having a positive effect on the environment,” said County Council Chair Vicki Almond.

PACE loans benefit businesses and the environment

Nationally, PACE loan programs are active in more than 15 states, have contributed to the creation of 3,600 jobs and have led to more than $300 million of green energy investments in commercial buildings. Baltimore County’s PACE loans are available countywide to commercial, industrial, agricultural, hospitality, retail and multifamily properties to access funding for energy-efficient and renewable energy upgrades. The loans can also be used to finance energy projects for new construction.

“Business owners are responding with strong interest to this new program because it allows them to achieve long-term energy cost reductions without the challenge of covering upfront installation costs in the short-term,” said Baltimore County Economic and Workforce Director, Will Anderson.

The MD-PACE Program is a partnership between the Maryland Clean Energy Center (MCEC), the statewide sponsor of the program, and PACE Financing Servicing (PFS), which administers the program. “By joining the MD-PACE program, Baltimore County has become the largest jurisdiction in the metro area to enable PACE financing for its business community.

We have received a lot of interest from the private sector and we believe the County is on its way to become a leading PACE market,” said Gerard Neely, Manager of Maryland’s Commercial PACE Programs for PFS. Enabling businesses to invest in renewable energy projects helps diversify local energy sources and complements the County’s solar projects, as 21 MW of solar projects were announced last summer. Public and private sector renewable energy projects alike help increase community resilience to climate change, while also reduces pressure on the electric grid.

Baltimore County’s PACE loan terms

The commercial PACE loans are secured through private lenders, must have a minimum value of $5,000 and may not be more than 20% of the full cash value of the property, as determined by the State Department of Assessments and Taxation. Loans would be nonaccelerating for terms up to 20 years, and repayable through a surcharge on the real property tax bill. If a property owner defaults on their PACE loan, the County would not be responsible in any way to cover the deficit. Commercial property owners, contractors and capital providers interested in MD-PACE, should visit www.md-pace.com or call the Maryland Clean Energy Center at 443-949-8505. For more information on the County’s PACE program, businesses may contact Energy and Sustainability Program Coordinator, Ayla Haig at 410-887-5854 or ahaig@baltimorecountymd.gov.

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