E3 Prime Environments works with individuals and organizations involved in, or influenced by, energy efficiency and renewables, water conservation, and environmentalism. These include building owners, property developers and managers, skilled trades contractors, municipalities and agricultural operators. They also encompass those entities serving these segments, especially architects, engineers, planners and specifiers.
The greatest impediment to going forward with upgrades in these areas is the associated cost and the impact on cash flow. Because most cutting-edge energy technologies have peaked and are above the minimum standards of local building codes, traditional financing lenders prefer to exclude them believing they’re simply luxury upgrades negatively impacting the project’s financial return. Identifying workable funding options for these projects that actually enhance financial performance is key to our success.
One of the most effective for those involved in these areas is Property Assessed Clean Energy (PACE). PACE is a relatively new and unique funding mechanism for energy efficiency, renewable energy and water conservation projects. It can be used for upgrades to existing buildings as well as fund new construction and repurposing projects. The loans are repaid by a voluntary special assessment to the property tax, like those levied for improvements to streets, sidewalks, sewers and street lights.
Important benefits versus traditional financing options include:
- Long-term financing – frequently 20 years or more – at a fixed interest rate
- 100% financing requiring no up-front capital
- Non-recourse – the property secures the loan, not the owner
- Since it’s a tax, the loan can be considered “off balance sheet” preserving borrowing capacity for other projects
- Sale of property does not initiate a loan payoff. The buyer assumes responsibility for the special assessment.
PACE upgrades frequently qualify for utility rebates, local grants and other incentives and federal tax credits.