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Property Assessed Clean Energy (PACE) Program

PACE

In March of 2021, the Town of North Andover opted into the Commonwealth's Property Assessed Clean Energy (PACE) program, which is a mechanism to finance energy improvements on commercial and industrial properties in Massachusetts. To finance improvements, a property owner agrees to a betterment assessment and lien on their property, which repays the financing. This approach enables owners to undertake more comprehensive energy upgrades with longer payback periods of up to 20 years. At property sale, the assessment stays with the property and is transferred to subsequent property owners.  MassDevelopment and the Massachusetts Department of Energy Resources (DOER) administer the PACE program. 

Click here to be taken to MassDevelopment's PACE Program webpage, which contains information about the program, guidelines, information for capital providers, eligibility requirements, and more.

 MassDev

 

 

Properties eligible for financing through PACE include:

  • Commercial buildings
  • Industrial buildings
  • Multi-family buildings with five or more units
  • Buildings owned by a nonprofit organization

Improvements eligible for financing through PACE must be permanently fixed to the property. Eligible improvements include:

  • Energy efficiency upgrades
  • Renewable energy
  • Extension of existing natural gas distribution to a property 

Benefits of PACE:

  • Property owners: Advantageous, non-recourse, upfront, long term, potentially off balance sheet financing that remains with the property if sold. Capital improvements could reduce operating costs and increase property values.
  • Municipalities (Town of North Andover): Job creation, business growth, and environmental benefits associated with reducing energy consumption. 
  • Capital providers/Mortgage holders: Improved cash flow and reduced credit risk from lower operating costs via financing that cannot be accelerated. Capital improvements could also increase collateral property value.

For more general program information and inquiries, contact:  pace@massdevelopment.com