Property Assessed Clean Energy or PACE programs, allow local government entities to raise money through the issuance of bonds or other sources of capital to fund energy efficiency and renewable energy projects to eligible property owners. Through the creation of financing districts, property owners can finance renewable onsite generation installations and energy efficiency improvements through a voluntary assessment on their property tax bills that is repaid over a period up to 20 years.
This voluntary assessment is secured by a senior lien on the property and does not require upfront payment. The lien provides debt collateral in the event a property owner defaults on the assessment. In most cases, the assessment and the lien are transferred upon sale.
Missouri Property Assessed Clean Energy
Missouri enacted PACE legislation in 2010 (HB 1692) that authorizes the formation of clean energy development boards by one or more municipalities for the purpose of establishing PACE programs (Sections 67.2800 – 67.2835, RSMo). Municipalities are defined as counties, cities or incorporated towns or villages in Missouri. Boards will establish application requirements and criteria for project approval, evaluate proposed projects and the credit-worthiness of property owners, enter into assessment contracts and administer the loans or use third party providers for financing origination.
The Missouri PACE legislation allows PACE to be used for energy efficiency improvements and renewable energy improvements. Energy efficiency improvements include any acquisition, installation or modification on or of publicly- or privately-owned property designed to reduce the energy consumption of such property, including, but not limited to:
- Insulation in walls, roofs, attics, floors, foundations, and heating and cooling distribution systems;
- Storm windows and doors, multi-glazed windows and doors, heat-absorbing or heat-reflective windows and doors, and other window and door improvements designed to reduce energy consumption;
- Automatic energy control systems;
- Heating, ventilating, or air conditioning distribution system modifications and replacements;
- Caulking and weatherstripping;
- Replacement or modification of lighting fixtures to increase energy efficiency of the lighting system without increasing the overall illumination of the building unless the increase in illumination is necessary to conform to applicable state or local building codes;
- Energy recovery systems; and
- Daylighting systems.
Renewable energy improvements include any acquisition and installation of a fixture, product, system, device, or combination thereof on publicly- or privately-owned property that produces energy from renewable resources, including, but not limited to photovoltaic systems, solar thermal systems, wind systems, biomass systems, or geothermal systems.
Missouri Clean Energy District
In January 2011 Jefferson City formed the first local PACE clean energy development board in Missouri --- the Mid-Missouri Clean Energy Development Board, now known as the Missouri Clean Energy District (http://www.mced.mo.gov/). It has contracted with the Missouri Clean Energy Fund LLC as its PACE Administrator. There is additional information on its website that details program eligibility, costs to participate and limitations. Eligible properties and projects include commercial, industrial, agricultural, multi-family, not-for-profit and public facilities. MCED recently launched a residential program called HERO that provides homeowners with an affordable financing option for energy-efficient and renewable energy upgrades.
Show Me PACE Clean Energy District
In July 2015, the Show Me PACE Clean Energy District became the second entity offering funding statewide for clean energy project improvements. Show Me Pace has selected the Missouri Energy Initiative, a Missouri based 501(c)3 nonpartisan nonprofit as the administrator. Show Me PACE is an open market program with multiple funding originators that allow on-demand financing from $50,000 to $50 million for energy efficiency, renewable energy, and water conservation projects. Commercial, industrial, agriculture, multi-family residential, nonprofit and public (governmental) properties are eligible for this program. Current PACE lenders approved by the Show Me PACE Board include PACE Equity, Greenworks Lending, TWAIN Financial Partners and CleanFund.
St. Louis PACE
In July 2013, the City of St. Louis launched its "Set the PACE St. Louis" program that uses PACE financing to enable home and building owners to install energy efficiency, renewable energy and water efficiency upgrades. Only residential property owners who own their home without an existing mortgage are eligible. Set the PACE St. Louis is administered by Energy Equity Funding, LLC, on behalf of the St. Louis Clean Energy Development Board with project financing from PNC Bank.
Missouri counties, cities and incorporated towns and villages may establish their own clean energy development boards or join one of Missouri’s statewide clean energy districts and may do so by passing an ordinance formally adopting the PACE lending program.
PACE - Missouri State Statute
Residential PACE FAQs
The Database of State Incentives for Renewable Energy (DSIRE)