PACE stands for Property Assessed Clean Energy, and allows property owners within an Energy Special Improvement District (E-SID) to finance energy efficiency or renewable generation investments through a lien on their property. The PACE lien is recovered over time through an added property tax assessment. Because the payments are recovered through property tax assessments, there is much lower risk for the program’s lenders, which achieves a lower interest rate for the PACE participants. In addition, PACE liens are not considered debt, and so they do not appear as liabilities on a business’s balance sheet or impact their credit. And when the property is sold, the PACE lien and the energy improvements that belong to the property remain with the property without any transfer hassle. Finally, under Ohio law, PACE projects can only be approved by the E-SID authority if the projected energy bill savings are greater than the increased property tax assessment. This means that PACE projects are legally guaranteed to achieve savings, with a lower interest rate than traditional borrowing and without impacting the borrower’s credit. Currently, PACE projects in the SOPEC program must be over $100,000 in cost to qualify.