Many building owners will soon face high penalties in New York if they don’t improve energy efficiency. Recent energy codes mean many building owners will need to retrofit existing buildings to use less energy and reduce emissions. Fortunately, PACE financing is an attractive and low cost funding option for many types of energy saving projects.
PACE Financing May Help You Make Energy Updates to Comply with New York’s Intro 1253
Existing buildings account for about 40% of annual energy use in the U.S. They also account for a significant amount of greenhouse gas emissions, including:
- 30% of carbon dioxide
- 49% of sulfur dioxide
- 25% of nitrogen oxides
Because of these high impacts on the environment, many municipalities are looking for ways to reduce environmental impacts from their buildings.
New York City’s Intro 1253 is one such energy code that aims to help reduce city wide energy use and emissions by imposing penalties on buildings that don’t meet certain standards by 2050. Therefore, building owners must act fast to start improving energy efficiency. CPACE financing may be the perfect option for funding a wide range of energy efficiency projects.
What Do the Energy Codes Say?
New York City’s energy codes are part of the Climate Mobilization Act. The goal is to reduce 80% of energy use for the city’s largest buildings by 2050. These laws affect most buildings over 25,000 square feet. There is also an additional goal of reducing energy consumption by at least 20% by 2025. Therefore, many property owners need to start projects to achieve these goals. Otherwise, they face hefty penalties from the city.
How PACE Financing Works
Financing energy efficiency projects is a concern for many property owners who need to meet these goals laid out by New York’s Intro 1253. PACE financing may be a good option for these property owners.
Commercial PACE loans are a type of financing that can be used for many energy efficient upgrades for your building. These loans provide you with the funding you need to invest in qualified energy efficient upgrades in your building. The project usually must provide you with energy savings that pay the loan back during its lifetime. Repayment happens through an annual property assessment, which means the financing stays with the building in case of a sale.
There are many ways to improve energy efficiency for existing buildings. Most of these projects are eligible for PACE financing. For example, some common ways property owners reduce energy use include upgrading HVAC and lighting systems, improving the building envelope, and installing renewable energy systems like solar panels. Each of these projects can be funded through PACE and also may help you achieve goals set by Intro 1253.
Stonehill PACE – Proving Commercial PACE Loans
Our team at Stonehill provides low cost, non-recourse financing through PACE programs in all states that have PACE programs. We work with commercial property owners for a wide range of property types, including office buildings, retail centers, hotels, and multifamily communities. Our experts help you throughout the PACE approval process and fund the loan so you can take advantage of this attractive financing option. Contact us today to get started.