PACE Financing for New Construction or Rehabs

PACE financing works great for rehabs or new construction.  It can be a powerful tool in your capital stack for a project.  PACE can typically lend the lesser of 30% of appraised value (at completion/after rehab) or up to 95% loan to value.  In most cases, qualifying PACE measures can be as much as 30% of total project costs, meaning there is plenty of eligible costs to reach the 30% of appraised value figure.

Lets say you have a project with a bank financing 80% of the project costs.  PACE can reduce the 20% gap you have to 5%.  This essentially can reduce the amount of equity you need to bring to the table for your deal to be completed.  AND the PACE portion of your deal has no personal guarantees, no upfront costs, and is treated as an operating expense so you can write off interest and principal payments. 

PACE financing is a powerful new tool you can add to your projects to make them more successful.  Contact us to learn how we can help you implement it in your next project.

Benefits of PACE Financing

Energy Efficiency for ZERO Down with PACE Financing

PACE financing provides upfront, fixed rate, long-term financing to property owners for qualified energy upgrades. Some of the game-changing benefits for owners are:

  • Loan can qualify as a Tax Assessment, which can in turn be an yearly operating expense
  • Eligibility based on a Cash Flow neutral determination
  • Loan Terms can be up to 20 years
  • Energy efficiency for tenants and costs are allowed to be passed to tenants

Why Use PACE?

  • No upfront cost energy upgrades
  • Uses your savings to pay off the loan
  • Off balance sheet financing
  • loan terms up to 20 years
  • Almost any energy efficient measure qualifies 

Contact us to learn how we can help you implement PACE financing into your facility

Solar Carports & Canopies - Why they are more lucrative than traditional structures

Let's say you own an apartment complex and want to provide covered parking for your tenants, or you are a restaurant owner and are tired of losing business when it rains or its too sunny and hot outside.  If you are in this type of situation, the first thing you will probably do is Google a company to provide you with a quote for a carport or patio cover.

So you get a quote and decide to go through with it.  But what if you would have made your carport a solar carport or your patio cover a solar patio cover?  Well let's take a look at why you come out way ahead when you choose to use the sun.

When you run a business, you are allowed to depreciate equipment and items like carports and canopies if they facilitate your business.  Typically these items receive a 15 year depreciation schedule from the IRS.  So the value of depreciation after 15 years will basically be the installed cost x your tax rate.  The canopy never pays back for itself, but you do get to write off a portion of the expense.

Let's look at a solar canopy's (or carport) benefits.  With the types of solar structures we design and install, you typically are allowed to take the entire installed amount and depreciate it over 5 years, and it is front loaded!  Plus, you can receive a 30% Federal Tax Credit on the installed cost of the solar structure.  You also will receive substantial energy savings by generating electricity from the sun!  The upfront cost may be higher, but the benefits make solar structures a no brainer!

Take a look at the following tables to see how solar structures pays back vs traditional structures:

Sample Solar Structure Payback - Click to Expand

Sample Traditional Structure - Click to expand

If you already have to spend money on a carport or other structure, the decision to go solar will payback even quicker than these tables show because you have sunk cost so you would only be looking at the delta between the traditional cost and the solar cost.

If you have any question or interest in about Solar Structures, please give us a call at (314) 374-3687 or shoot me an email and glafser@energistics-mo.com. If you are in the St. Louis area please also feel free to drop by our office!