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Power Generation Week 2016

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Property Assessed Clean Energy - A Paradigm Shift in Funding Energy Efficiency & Renewable Energy Projects in the US and Beyond

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Power Generation Week 2016

  1. 1. PACE Financing A Paradigm Shift in Funding Energy Efficiency & Renewable Energy Projects in the US and Beyond "An Energy Solutions Company" Scott Ringlein President & Founding Partner
  2. 2. Limited Capital
  3. 3. Financial Hurdles
  4. 4. Long Payback Poor ROI
  5. 5. What if….
  6. 6. You had access to capital….
  7. 7. There were no financial hurdles….
  8. 8. Reduce your energy costs….
  9. 9. Improve company finacials….
  10. 10. To Good To Be True?
  11. 11. PACE Property Assessed Clean Energy Financing
  12. 12. What is PACE? EnergyEfficiency Conservation Energy Water Renewable Non Recourse Financing
  13. 13. What is PACE? Voluntary Property Tax Assessment Property Improvement Financing Model
  14. 14. What is PACE? State Law Adopted Locally
  15. 15. What is PACE? Long Term Repaid as Property Tax Fixed Rate
  16. 16. What is PACE? Includes Maintenance & EOL Costs Savings > Cost
  17. 17. Originated in California in 2009 Adopted in 32 U.S. States & DC Expanded Into Other Countries Where is PACE?
  18. 18. What Projects Qualify?  Facility Upgrades  New Construction  Process Improvements  Refinancing of Prior Projects  Financing a PPA
  19. 19. hat Technologies Qualif
  20. 20. Bundle High Energy & Low Energy Efficient Solutions…. To Equalize Payback Periods
  21. 21. Who Funds PACE? Varies State to State  Bonds  Self Funding  Private Equity  Traditional Funding
  22. 22. 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
  23. 23. Who Qualifies for PACE? Buildings in PACE Districts
  24. 24. Who Qualifies for PACE? Although varies by state….. For profit, non profit & Government owned buildings may qualify
  25. 25. Who Qualifies for PACE? Business is in Good Standing Not Delinquent on Mortgage or Property Tax
  26. 26. Who Qualifies for PACE? Although varies by lender and PACE District….. Total LTV <80%
  27. 27. So Why Use PACE?  Non Recourse  No Down Payment  100% of Costs Covered
  28. 28. So Why Use PACE?  Property Assumes Debt  PACE Note Transfers @ Sale
  29. 29. So Why Use PACE?  Increases Property Value  Real Property Not Personal
  30. 30. So Why Use PACE?  Long Term ~ 15-25 Yrs  Fixed Interest Rate
  31. 31. So Why Use PACE?  Expense vs. Debt  No Affect on Credit  No Affect on Future Debt
  32. 32. So Why Use PACE?  No Affect on Incentives  No Affect on Tax Credits  Consult on Depreciation
  33. 33. Does It Really Work?
  34. 34. Success of PACE
  35. 35. PACE Resources?
  36. 36. "An Energy Solutions Company"

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