PACE FinancingA Paradigm Shift in Funding Energy

Efficiency & Renewable EnergyProjects in the US and Beyond

"An Energy Solutions Company"

Scott Ringlein President & Founding Partner

Why?

TraditionalIndustrialBarriers!

LimitedCapital

Financial

Hurdles

Long Payback

Poor ROI

What if….

You had access to capital….

There were no financial hurdles….

Reduce your energy costs….

Improve company finacials….

To GoodTo Be True?

PACEProperty Assessed

Clean EnergyFinancing

What is PACE?

EnergyEfficiency Conservation

Energy Water Renewable

Non RecourseFinancing

What is PACE?Voluntary

Property Tax Assessment

PropertyImprovement

Financing Model

What is PACE?State Law

AdoptedLocally

What is PACE?

Long Term

Repaid as Property Tax

Fixed Rate

What is PACE?

Includes Maintenance & EOL Costs

Savings > Cost

Originated in California in 2009Adopted in 32 U.S. States & DCExpanded Into Other Countries

Where is PACE?

What Projects Qualify? Facility Upgrades New Construction Process Improvements Refinancing of

Prior Projects Financing a PPA

What Technologies Qualify?

With some exceptions….

If an energy savings can be calculated, it will

most likely qualify….but….

Bundle High Energy & Low Energy Efficient

Solutions….

To Equalize Payback Periods

Who Funds PACE?Varies State to State Bonds Self Funding Private Equity Traditional Funding

How Much is Available?Typically 20% - 30%

PACE Fair Market Value (FMV) Property Value Loan to Value (LTV) Annual Energy Spend % of Value by Lender % of Value by PACE District

Who Qualifies for PACE?

Buildings in PACE Districts

Who Qualifies for PACE?Although varies by state…..

For profit, non profit & Government owned buildings may

qualify

Who Qualifies for PACE?

Business is in Good Standing

Not Delinquent on Mortgage

or Property Tax

Who Qualifies for PACE?Although varies by lender

and PACE District…..

Total LTV <80%

So Why Use PACE?

Non Recourse No Down Payment 100% of Costs Covered

So Why Use PACE?

Property Assumes Debt PACE Note Transfers @ Sale

So Why Use PACE?

Increases Property Value Real Property Not Personal

So Why Use PACE?

Long Term ~ 15-25 Yrs

Fixed Interest Rate

So Why Use PACE?

Expense vs. Debt No Affect on Credit No Affect on Future Debt

So Why Use PACE?

No Affect on Incentives No Affect on Tax Credits Consult on Depreciation

Does It

Really Work?

Success of PACE

PACE Resources?

"An Energy Solutions Company"