Why Commercial PACE?

With Commercial PACE financing, the benefits of lower operating costs can be enjoyed immediately. Loans are repaid through an assessment placed on the property tax bill, and 100% of installation costs can be financed for energy efficiency, renewable energy, and water efficiency improvements.


  • Projects can be cash flow positive from day one.
  • Improvements increase the property's value.
  • Lowers operating costs and preserves capital.
  • If the property is sold, financing assessment and improvements transfer to new owner.

Learn how Commercial PACE can work for you:

Property Owners

Making your building more energy efficient increases its value, but can be expensive. With Commercial PACE financing, you can finance 100% of your building upgrade and increase your bottom line while lowering your operating costs.

What are the ideal candidates and properties for Commercial PACE financing?

Older buildings in need of upgrades, properties with no mortgage or low loan-to-value, and properties needing to comply with legal requirements can be excellent candidates. Eligible properties may include commercial offices, apartment buildings, schools, industrial facilities, hotels, retail and restaurants.

What kind of upgrades are eligible?

Eligible upgrades include heating, ventilation and air conditioning, building automation systems, elevator modernization, solar PV or fuel cells, building envelope upgrades, high efficiency lighting, day lighting and occupancy sensors, industrial manufacturing equipment, and more!

How do I get started?

Property owners choose their own PACE investor and contractor, and negotiate their own rates and terms. There are multiple administrators operating in Los Angeles County that differ on financing terms, underwriting criteria, timelines for payout, and levels of customer service. We recommend exploring the various administrators (link) to find the best financing product for your project.

Have a project? Complete an initial application.

Have questions? Contact us at info@lapace.org or (877)785-2237.

Mortgage Lenders

Mortgage lenders can offer a new financing product for energy and water saving improvements through Commercial PACE. With this financing product, lenders have a unique opportunity to fund building improvements on which mortgages are currently held. Owners are required to gain mortgage holder consent before a PACE assessment can be put in place, which offers institutions the ability to invest in upgrades upfront.

With Commercial PACE, mortgage lenders can:

  • Purchase PACE bonds.
  • Attract new mortgage and construction lending business.
  • Enhance cash flow and increase collateral value.
  • Reduce hedge risk.
  • Earn CRA credit.


Commercial PACE offers a significant opportunity to investors. This financing tool leverages the property tax system to secure investments in energy efficiency, renewable energy, and water efficiency projects, providing a secure platform for servicing and underwriting. Transactions can be structured with longer, more flexible terms at secured rates, allowing the property owner to pursue larger projects.


One of the most common barriers to pursuing building performance improvements is a lack of funding. Contractors can offer Commercial PACE to their commercial clients as a solution to cover energy efficiency, renewable energy, and water efficiency upgrades.

  • Lower operating costs
  • Increase property value
  • Funds up to 100% of installed costs