PACE Program

Property Assessed Clean Energy (PACE) is a tax-based financing mechanism that enables low-cost, long-term funding for energy improvements. The program lets you agree to a betterment assessment and lien on your property, sufficient to repay the financing extended by a private capital provider. If the property is sold before the financing has been repaid, the assessment stays and is transferred to subsequent property owners. PACE enables owners to use energy savings to undertake more comprehensive energy upgrades with financing terms of up to 20 years. 

MassDevelopment administers the PACE Program.

What's the PACE Advantage
PACE Massachusetts offers more flexibility than a direct loan, allowing you to undertake comprehensive energy upgrades with longer financing terms of up to 20 years without adding new debt to your balance sheet. Savings from the upgrades can be used to repay the betterment over time which can be collected quarterly, semi-annually, or annually. Additionally, at property sale, the assessment and lien are transferred to future property owners, who also benefit from the installed upgrades and will realize energy savings.

Other benefits include the following:
  • Accelerated job creation, business growth, and environmental benefits for communities
  • Cash flow improvements and reduced credit risk for capital providers
  • Environmental relief and progress towards Massachusetts clean-energy goals
Who is Eligible?
Owners of commercial and industrial buildings, owners of multifamily properties with five-plus units, and nonprofit organizations that own buildings.

How does the Program Work?
Interested property owners can submit a completed PACE Massachusetts application detailing the type of energy improvement project they want to undertake – demonstrating that the project's energy savings will be greater than the cost (a requirement of the program). Applicants should choose a capital provider such as a bank or a PACE lender, to fund the project and to help finalize the application package. MassDevelopment can assist property owners with identifying funding options. 

How do I Get Started?
First, contact MassDevelopment to discuss your interest in PACE. Their experienced staff can guide you through the process. Email with your questions.