The Property-Assessed Clean Energy (PACE) allows the local government to raise money through bonds or other sources of capital to fund renewable energy projects. In a particular assessment district, the municipality will issue bonds for funding public projects. Property owners that benefit from the improvements repay the bond through property assessments, which are generally secuired by a property lien and paid in addition to the property tax bill.

Advantages Disadvantages
Secure financing of comprehensive projects over a long term
Administrative and legal expenses to setup
Repayment obligation passes with ownership
A lower turn around for financing
Taps into private capital
Resistance by lenders whose priority in bankruptcy may be reduced
Allows municipalities to encourage energy efficiency