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PACE program provides commercial property owners with funding for sustainable upgrades

The City of Kansas City, Mo., City Council voted unanimously on Oct. 17 to join the Missouri Clean Energy District, which will provide the City with access to a statewide Property Assessed Clean Energy or PACE program.

The PACE program offers private commercial property owners access to funding for energy efficiency and renewable energy upgrades to their property. Applications to participate in the program are available at The PACE program is governed by the Missouri Clean Energy District, a newly-created Clean Energy Development Board.

“This is an exciting opportunity for Kansas City to take the lead in providing access to PACE funding, which will allow people to finance renewable energy and energy efficiency projects for commercial properties on favorable terms,” said Councilman John Sharp, a sponsor of the ordinance authorizing district membership.

The PACE program is voluntary and provides 100 percent of upfront costs for energy efficiency and renewable energy projects for commercial properties. Participating property owners may have up to 20 years to repay these costs through a special property tax assessment. This removes a number of barriers to property owners who may have an interest in upgrading their business property but who wish to avoid debt, may not be able to afford the upfront costs, or are uncertain how long they will remain on the property.

“Through this action, property owners who wish to upgrade their facility by making it energy efficient will have access to capital, which is at times difficult to obtain given current market conditions,” said Councilman Scott Wagner, another sponsor of the ordinance. “We hope that commercial building owners in Kansas City will find PACE financing to be a viable means for reducing their energy costs and greenhouse gas emissions, while also creating jobs for small, local businesses who can conduct energy audits, make energy efficiency improvements to buildings, and install renewable energy systems.”

Money provided through the Missouri Clean Energy District is virtually unlimited for qualifying projects and pays for upfront costs of the improvements. Repayment is made from savings resulting from reduced energy use. Because the property improvement is repaid through a special property tax assessment, the repayment is an obligation of the current property owner. This means the repayment obligation stays with the property and not the individual who initiated the property improvement.

The Missouri Clean Energy District is a separate political body from the municipalities that participate in the energy improvement financing program. Neither the state nor the city is liable for the bonds issued by the district to fund projects.

The PACE program was authorized by legislation passed in 2010 by the Missouri General Assembly.

For more information about participating in this program, please visit or contact

David Pickerill, Missouri Clean Energy District administrator, at


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