Our powerful funding mechanism enables low-cost, viable options for millions of commercial customers.
For customers that prefer to finance their distributed energy site improvements, De-Meter offers two alternatives: PACE financing and our proprietary PACE Lease®.
What is PACE Financing?
Property Assessed Clean Energy (PACE) is an innovative new program to facilitate energy improvement projects by giving a property owner the ability to pledge and pay an amount as a voluntary assessment on the property tax bill. To qualify, a property owner must sign an assessment contract that sets forth the terms of a long-term financing arrangement. PACE is property-secured financing and, thus, underwriting can be completed without company financial statements or a corporate guarantee. PACE also facilitates annual collection, with payments easily applied through an assessment on the property tax bill. If the property is sold, the PACE assessment simply remains with the property.
What is a PACE Lease®?
De-Meter pioneered the PACE Lease® Agreement – the first Power Purchase Agreement (PPA) secured by a PACE assessment. This structure is usually optimal for our customers without sufficient tax appetite to use the Investment Tax Credit (e.g., REITs or low marginal taxpayers). Customers pay nothing upfront and lock-in fixed, low-cost rates for energy over a 20-year term. A PACE Lease® is very similar to traditional PACE financing in that a PACE assessment serves as security for the property owner’s promise to pay the services fee over the specified term. All costs of installation and ongoing operation and maintenance and insurance are included.