What is PACE?
Property Assessed Clean Energy (PACE) helps property owners finance energy efficiency and renewable energy upgrades using a long term, fixed rate tool tied to the property.
Property Assessed Clean Energy is a financing mechanism, authorized by Missouri state statute, that allows property owners to pay for qualified energy improvements over time through a special assessment on the property tax bill.
PACE uses private capital, not taxpayer funds. The PACE lender provides up to 100% upfront financing for eligible improvements, typically through fixed rate financing with terms of up to 20 years. The assessment stays with the property, not the individual borrower.
The key requirement is that the benefits of the project, including energy savings, operations and maintenance savings, and avoided cost of capital, must exceed the cost of the measures.
Understand PACE by stakeholder
Property Assessed Clean Energy (PACE) is a tool to finance energy efficiency and renewable energy improvements using long-term, fixed-rate funding repaid through a special assessment on the property. Use the sections below to see what PACE means for your role.
Running a C-PACE program
Program administrators design, operate, and oversee C-PACE programs on behalf of local or state governments. They ensure that projects follow statute, deliver real savings, and protect public interest.
- Maintain rules, documentation, and eligibility criteria.
- Verify that project benefits exceed total costs (SIR > 1.0).
- Coordinate with building owners, contractors, and lenders.
- Manage placement and collection of PACE assessments.
- Handle reporting and compliance oversight.
Investing in PACE projects
Capital providers supply long-term, fixed-rate financing repaid through a property assessment.
- Offer 100% upfront financing for energy upgrades.
- Underwrite projects based on program rules.
- Coordinate on closing, documentation, and enrollment.
- Use a repayment structure tied to annual assessments.
- Support projects that require deeper, longer-term capital.
Public benefits and local oversight
Cities and counties authorize programs that use private capital to improve building performance without taxpayer funding.
- Promote energy efficiency and economic development.
- Rely on private capital, not general funds.
- Establish enabling ordinances and local rules.
- Receive transparent program data and reporting.
Understanding PACE alongside existing debt
Mortgage lenders review and consent to PACE assessments, ensuring alignment with existing financing.
- Review energy savings and project economics.
- Assess impact on cash flow and collateral value.
- Approve consent as required by many programs.
- Gain visibility into improvements that strengthen assets.
How PACE is structured in law
State statutes authorize PACE, define eligible projects, and outline the savings test, governance, and collection method.
- Uses property-based assessment repayment.
- Requires energy and O&M savings to exceed costs.
- Defines eligible measures (efficiency, renewables, etc.).
- Specifies reporting and lender notification rules.
PACE in Missouri
Missouri authorizes PACE through statute and local government participation.
- 100% upfront financing, up to 20-year terms.
- Savings-to-investment ratio must exceed 1.0.
- Mortgage lender consent required.
- Eligible sectors include commercial, nonprofit, industrial, agricultural, and multifamily.
How PACE aligns with federal goals
While enabled at the state level, PACE supports federal priorities around energy, emissions, and building modernization.
- Works alongside tax credits and federal incentives.
- Supports national energy efficiency goals.
- Encourages resilience and deep retrofits.
- Leverages private capital for public outcomes.
Show Me PACE FAQ
Have questions about PACE financing or eligibility? Visit the official Show Me PACE FAQ page for clear answers.
View the FAQ