PACE funding is a low cost financing option that helps many commercial property owners make upgrades to their property. One common upgrade that many commercial buildings could benefit from is a new energy-efficient roof. What many don’t realize is that property assessed clean energy financing can also help pay for these types of upgrades. We’ll talk about using PACE funding for energy efficient commercial roofing in this article.
Why Use PACE Funding for Roof Upgrades?
There are many reasons to consider using PACE loans to pay for your roofing project. This type of financing can actually provide 100% of the capital needed to pay for both hard and soft costs for your roof replacement. PACE funding is a low cost financing option that many states have adopted to help property owners improve energy efficiency without large up-front costs or high financing fees.
Property assessed clean energy loans can provide financing for up to 25% of your property’s value. It also requires no personal guarantees and is repaid as a property assessment on your tax bill. These loans are a long-term financing solution, even upto 30 years at a fixed rate. In addition, the repayment responsibilities stay with the property, so if you sell it, the new owner will be responsible for the loan.
You can use PACE funding for many different types of projects. The key is that they must provide renewable energy, increase energy efficiency, or improve resiliency for the property. Therefore, you can only use this type of funding for eligible projects. The good news is that many projects may be eligible without you realizing. One example would be replacing your roof with a more energy-efficient option.
When are Roof Replacements Eligible for PACE Loans?
Many property owners don’t realize that their roof replacement projects may be eligible for PACE funding. Replacing the roof is often necessary to protect your building from things like weather and pests. However, your roof also plays a key role in keeping your building efficient. The roof is a common place where heat and cold from outside enter the building. This can increase the costs and energy needed to keep the building comfortable.
Fortunately, there are many different efficient commercial roofing products to choose from. Many are light-colored or reflective to prevent heat transfer to the building. In addition, most efficient roofing also features ultra-efficient insulation to help improve results.
Since roofing can save you significantly on the energy needed to heat and cool your building, often you can use PACE loans to help cover at least some of the costs. While you’re at it, consider whether solar panels might be a good option as well, as you can typically install it all at the same time and seriously reduce energy consumption and costs.
Expert Commercial PACE Lenders at Stonehill PACE
Getting PACE funding is easy with our team at Stonehill PACE. We are direct PACE lenders offering this unique financing to all commercial asset classes. We work with a variety of property types to help you get the financing you need. Contact us today to learn more and get started.