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Sustainable Middleborough explains PACE financing option for commercial and multifamily clean‑energy work
Summary
At the Feb. 27 meeting, Kimberly French of Sustainable Middleborough briefed the board on Property Assessed Clean Energy (PACE) financing through MassDevelopment, a tool the group says could help commercial, nonprofit and larger multifamily property owners in Middleborough finance energy upgrades and certain new all‑electric construction.
Kimberly French, a leader of Sustainable Middleborough, briefed the Town of Middleborough Zoning Board on the Property Assessed Clean Energy (PACE) financing program on Feb. 27, 2025. French said the program, administered through MassDevelopment, is a financing tool for building owners that attaches a repayment obligation to the property tax bill.
French said PACE can be used on commercial, industrial and multifamily buildings of five units or more and on nonprofit buildings that pay property tax. “It can be used to finance things like roofs, windows, HVAC systems, weatherization, solar installs, geothermal, other clean energy generation,” French said. She told the board the program is not aimed at one‑ to four‑family private residences or town buildings.
The presenter told the board that projects typically need to be sizable to work under PACE: “The minimum project is probably around $200,000 to make it work,” French said. She also described financing features proponents say property owners find attractive: repayment periods can extend to about 20 years, obligations can remain with the property if it is sold, and payments are collected through the property tax assessment.
French noted PACE administrators are testing a provision that allows financing of up to 25% of new construction costs if the new building is all‑electric; she said MassDevelopment is considering increasing that percentage. “They’re looking to make that actually a little higher because they’re finding that’s not enough, not enough incentive,” she said.
The presentation included practical questions developers commonly raise, French said, including that some PACE lenders’ rates are higher than conventional loans and that lenders and applicants ask about how savings and repayment are calculated. French said MassDevelopment performs project calculations to estimate lifetime savings, which are used in payment planning.
French asked that the board and staff pass PACE materials to developers and applicants who appear before the town’s permitting boards. She left flyers for the town to distribute and offered to follow up with staff. No formal action was required or taken by the board on the presentation.
Why it matters: PACE can provide an alternative financing route for larger local buildings seeking energy‑efficiency retrofits or certain all‑electric new construction, potentially unlocking private investment for local rehabilitation or redevelopment projects.
