Start a Program

Starting a PACE Program

There are a few simple steps in starting a PACE program in your municipality. But first, your state must have PACE enabling legislation in place. If you are not sure whether there is PACE enabling legislation in your state, click here to download PACE legislation at a glance or check out our interactive map. If you are working to develop PACE enabling legislation, please see our PACE legislative checklist.

Step 1: State and local governments establish, in law or public policy, a specific goal or objective: promoting energy efficiency as a means to promote jobs or better air quality, for example. A municipal government may establish a type of land or real property secured benefit district.

Step 2: Property owners within the district (or the municipality if a district is not required) can voluntarily choose to participate and an experienced contractor assesses the scope of desired improvements. This may involve a thorough energy audit for efficiency measures and their projected savings and costs, or cost estimates for renewable projects weighed similarly against projected energy savings.

Step 3: The municipality provides financing for the project, typically by selling bonds secured solely by payments made from participating property owners.

Step 4: Homeowners who receive a financing benefit from the municipality will agree to accept a property tax assessment or charge for up to 20 years, though shorter periods may be chosen or required by the municipality.

These 4 simple steps improving energy security for states and local communities by reducing their reliance on inter-state imports and strain on an already overloaded and outmoded grid system.

PACE Program Administration Templates:

DOE Clean Energy Finance Guide Chapter 12 March 2013

Description of Program Administration Templates

Template – Program Handbook

Template – Eligible Measures

Template – Initial Application

Template – Final Application

Template – Lender Acknowledgement

Description of Marketing Templates

Template – Launch Release

Template – Program Overview

Template – PACE Brochure

Template – Commercial PACE FAQ

Template – Social Media Toolkit


PACE Handbooks and Program Materials:

Connecticut Commercial PACE Handbook. CEFIA Commercial PACE program. November, 2012.

Energize New York Handbook. New York PACE Program. September, 2012.

San Francisco Program Handbook. GreenFinance SF, San Francisco PACE program. 2012.

D.C. Program handbook. D.C. Commercial PACE program. 2012.

PACE handbook Ann Arbor. Ann Arbor PACE Program. 2012.

Property Assessed Clean Energy (PACE) Replication Guidance Package for Local Governments. Sonoma County Energy Independence Program. 2012.

Guidelines for Pilot PACE Financing Programs. The Department of Energy. 2010.