pace%marketoverview · 2015-06-12 · $2.5!mil!energy!&!solar!upgrade!–mul7!project 19....
TRANSCRIPT
![Page 1: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/1.jpg)
A
PACE Market Overview New Jersey PACE Summit June 12, 2015
![Page 2: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/2.jpg)
PACENOW
More is be;er ü 501(c)3 Not-‐for-‐Profit ü FoundaFon Funded
• Rockefeller Brothers Fund • Kresge FoundaFon • Tilia Fund • Energy FoundaFon
ü InformaFon, Resources, Advice, Networking, Problem Solving
• www.PACENow.org
2
Represen7ng PACENa7on
![Page 3: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/3.jpg)
PACE IN 90 SECONDS VIDEO
3
![Page 4: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/4.jpg)
WHAT MAKES A PACE DEAL?
4
A Building Owner
![Page 5: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/5.jpg)
WHAT MAKES A PACE DEAL?
5
A Project…. And a Contractor
![Page 6: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/6.jpg)
WHAT MAKES A PACE DEAL?
6
Someone to Fund the Project
![Page 7: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/7.jpg)
WHAT MAKES A PACE DEAL?
7
Local Government to “Service” the Financing
![Page 8: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/8.jpg)
WHAT MAKES A PACE DEAL?
8
Building Owner Repays with an Assessment
![Page 9: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/9.jpg)
WHAT MAKES A PACE DEAL?
9
Assessment Repays Project Funder
![Page 10: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/10.jpg)
OLD CONCEPT – NEW APPLICATION
10
1736 – First Assessment District in Philadelphia
Today – 37,000 Assessment Districts naFonwide ü Water & Sewer Service ü Parks ü Sidewalks ü LighFng ü Downtown renewal ü Energy Efficiency (PACE)
Local Government Financing – Public Purpose Goal
![Page 11: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/11.jpg)
WHO CAN USE PACE?
Almost Any Building
11
![Page 12: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/12.jpg)
WHAT FOR?
12
Projects that Save or Generate Energy
![Page 13: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/13.jpg)
WHY PACE? Long-‐Term Payback
13
![Page 14: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/14.jpg)
WHY PACE? Makes Long Payback Projects Work
14
The secure nature of PACE enables up to 20-‐yr funding: projects with simple paybacks as long as 12 years can be implemented on a posiFve cash flow basis
ü Increases NOI ü Increases Property Value
![Page 15: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/15.jpg)
WHY PACE? PACE Transfers on Sale
15
No payoff on sale – PACE automaFcally transfers to the new owner, like any other real estate tax
ü No residual encumbrance and easy exit. ü Takes the risk away from invesFng in needed CAPEX.
![Page 16: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/16.jpg)
WHY PACE?
16
Share Benefits and Costs with Tenants
The real estate tax assessment can be passed on to tenants under most lease forms
ü Eliminates the landlord/tenant split incenFve for triple net, modified gross leases, and industrial modified gross leases.
![Page 17: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/17.jpg)
SIMON PROPERTY GROUP – GREAT LAKES MALL, OH
“We hope to serve as pioneers in this arena, encouraging others to explore the many ways to reduce energy use now, rather than delaying sound financial and environmental decisions.” George Caraghiaur, former SVP for Sustainability at Simon Property Group
17
$3.4 mil Energy Efficiency – Mul7 Project
![Page 18: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/18.jpg)
PROLOGIS, INC. HEADQUARTERS – SAN FRANCISCO, CA
“Prologis is parFcipaFng in the PACE program in order to promote new, innovaFve soluFons for financing sustainable building improvements. It provides the flexibility to drive more energy improvement programs and that’s something everyone should embrace.” Jack Rizzo, Managing Director, Global Construc7on and Renewable Energy, Prologis
18
$1.4 mil Energy & Solar Upgrade – Mul7 Project
![Page 19: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/19.jpg)
SOLAR & EE UPGRADE IN MIDDLETOWN, CT
Harmord West Harmord
Bridgeport Norwalk Simsbury Stamford Stramord
Southbury
Project § the installation of air units, variable
frequency drives, high efficiency lights, occupancy sensors, air leakage improvements, an upgraded energy management system,
§ and a 260 kW ground-mounted solar photovoltaic system.
Financial Impact ▪ Energy savings of $224k annually
Impact ▪ 51M kBTUs saved
▪ 8.5M kWh clean energy produced
$2.5 mil Energy & Solar Upgrade – Mul7 Project
19
![Page 20: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/20.jpg)
PACENATION
20
![Page 21: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/21.jpg)
PACE IN 2007
21
![Page 22: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/22.jpg)
PACE TAKES OFF
22
29 states and DC -‐ 80% of US popula7on
PACE amendment
2009
2009
2009
2013
2009
2009
2009
2009
2009
2009
2015 2008 2013 2013
2013
2011
2010
2010
2010
2010
2010
2010
2012
2010 2009
HI ExisFng Authority
2015 / 2016 legislaFve iniFaFves
2013
22
2014
2015
2016 2016
2016
2016
2015
2016
2015
PACE enabled
![Page 23: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/23.jpg)
RESIDENTIAL
![Page 24: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/24.jpg)
Early stage PACE program development
PACE programs with funded projects
RESIDENTIAL PACE TODAY
24
PACE enabled
40,000+ Homes -‐ $750+ million – 10,000+ Jobs
24
![Page 25: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/25.jpg)
RESURGENCE IN RESIDENTIAL
ü SCEIP, HERO, CaliforniaFIRST, Ygrene, Alliance NRG • San Francisco, San Diego, Los Angeles, Sacramento, Placer
ü Strong PoliFcal Leadership ü California (CAEATFA) reserve
• Municipal opt-‐in insures mortgage lenders
ü HERO Program securiFzes $470+ million • Deutsche Bank underwrites 3 deals, AA raFng, -‐ 4.00%
ü FHFA conFnues to voice disapproval
25
California Leads Residen7al Renaissance
![Page 26: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/26.jpg)
COMMERCIAL
![Page 27: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/27.jpg)
Early stage PACE program development
PACE programs with funded projects
JUNE 2010
27
PACE enabled
27 Projects completed -‐ $5 mil
27
![Page 28: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/28.jpg)
PACE programs with funded projects
PACE PROGRAMS TODAY 330+ Projects -‐ $112+ mil -‐ Pipeline $300+ mil -‐ 1,620 Jobs
Early stage PACE program development Launched PACE programs
PACE enabled
28
![Page 29: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/29.jpg)
PACE COMMERCIAL MARKET STATS Cumula7ve Financing
29
![Page 30: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/30.jpg)
PACE COMMERCIAL MARKET STATS Broad Applicability
30
![Page 31: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/31.jpg)
PACE COMMERCIAL MARKET STATS Broad Applicability
31
![Page 32: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/32.jpg)
PACE COMMERCIAL MARKET STATS Broad Applicability
32
![Page 33: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/33.jpg)
PROGRAM ADMINISTRATION
ü PACE Plamorm – Municipality as “Loan Servicer”
ü Sole municipality • Edina (MN), San Francisco (CA), Ann Arbor (MI),
Sacramento (CA)
ü MulFple municipaliFes – ConsorFums • California (California First, FigTree, LA County)
• Florida (Florida Green Energy Works, Ygrene)
• Michigan (MI Lean & Green)
• New York (Energize New York)
ü Statewide – Uniformity and Scale • ConnecFcut
33
Decentralized Market – Mix of Models & Providers
Low
High
![Page 34: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/34.jpg)
CHALLENGES
34
Volume is the answer to all of our problems
ü Complexity – Keep it Simple
ü Get down that learning curve ü Track and share data ü Cooperate whenever possible ü Get to YES faster
![Page 35: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/35.jpg)
PACENOW
David Gabrielson: [email protected] George Caraghiaur: [email protected] Kris4na Klimovich: [email protected]
35
Contact informa7on
![Page 36: PACE%MarketOverview · 2015-06-12 · $2.5!mil!Energy!&!Solar!Upgrade!–Mul7!Project 19. PACENATION%! 20 . PACE%IN2007 21. PACE%TAKESO FF% 22 29!states!and!DC!!N!80%!of!US!popula7on!](https://reader035.vdocument.in/reader035/viewer/2022070917/5fb764b139b8094e7317139f/html5/thumbnails/36.jpg)
PACENOW
Vision PACE is a highly effecFve financing opFon that every building owner considers when implemenFng energy efficiency, renewable energy, and water management upgrades to their properFes.
Mission To be the leader of and advocate for the growing universe of PACE stakeholders; and the provider of informaFon, resources, consensus-‐based advice and guidance, market network building and soluFons to PACE market problems.
36
Represen7ng PACENa7on