PACE, which stands for Property Assessed Clean Energy, programs create local bond financing districts. These districts then lend back capital to building and home owners to fund energy retrofit projects. Owners repay the loan through their property tax bills, typically over a 15-20 year term.

PACE funding is available for both residential and commercial buildings. It is estimated that by 2015 investment in PACE financing for commercial buildings will total $2.5 billion annually.

There are currently 23 states with PACE financing and another 5 states with legislation pending.