Gaining PACE in Puerto Rico

The Foundation has established a working group dubbed “Gaining PACE in Puerto Rico” and are seeking to fund an ongoing effort to pursue enabling legislation and the establishment of a Program Administrator.

Property Assessed Clean Energy (or PACE) is an innovative financing structure that makes it possible for owners of commercial industrial, and residential properties to attain low-cost long-term, financing for energy efficiency, water conservation, hurricane preparedness, renewable energy projects, and other resiliency measures based on the needs of the relevant jurisdiction.


PACE authorizes property taxing authorities to work with private capital providers to provide upfront financing to property owners for qualifying improvement projects and to collect the repayment periodically through the property’s tax bill. This is fundamentally the same municipal finance mechanism used to fund public goods (like roads, sewers and stadiums!) for a private purpose.


Financing terms extend up to 30 years in some jurisdictions based on the types of improvements, usually cover 100% of improvement cost, result in utility and other cost savings that typically exceed the amount of the assessed periodic payment, and generally lead to an increase in the market value of the property.


PACE legislation has been adopted in 35 states and the District of Columbia and is now available in more than 1000 municipalities across the United States.


PACE can be a useful part of capital accumulation for investment in the energy improvement and resiliency of Puerto Rico’s commercial and residential property.


Some important considerations:

  1. Very democratic form of financing. Because of the strong security tied to the value of property, it is credit light (no financial covenants, no borrower guarantees) and available to most residents and businesses whether large or small, in particular those without strong (or any) banking relationships. This means capital for investment in places like Utuado and Humacao not just major urban markets

  2. No government guarantees of the debt at any level

  3. Projects financed by definition make the built environment of the state more resilient, efficient, and sustainable, and positively affect the State’s ability to reach its goals for renewable generation both directly and indirectly

  4. Spurs local skilled and unskilled job creation in the green economy

  5. Spurs local economic activity and tax revenues

  6. Leverages the existing infrastructure of CRIM and with a P3 to operate the program will generate additional revenues for that department

  7. Special structures can be employed to finance third-party owned systems attached to property (solar lease/PPA) and to improve even properties owned by PRIDCo

  8. Funds available for this type of financing come from the private sector and are limited only by the states capacity to offer up investable opportunities

  9. Domestic banks can also participate as lenders to expand their book safely to borrowers that might otherwise not meet transaction standards

  10. When a property is sold the PACE loan automatically transfers to the new owner but may be prepaid at any time

Want to learn more?
Join the Gaining PACE Group? Contact Us!
Borincana Foundation Inc. (Fundación Borincana)
a Puerto Rican Charitable Organization under Section 1101.01(a)(2) and a U.S. non-profit 501c(3) 
IRS Determination Letter available on request
  • Facebook Social Icon
  • Twitter Social Icon