PACE's popularity and growth in the USA has been exponential, and since 2008 it has financed over 326,000 home and commercial retrofits with nearly 13 billion dollars (over 26 billion economic impact), and created over 182,000 job years; all without one penny of taxpayer support (PACE Market Data).

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The US PACE model has achieved this success due to several key factors which the legislative framework must enable and facilitate:

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1. PACE loan capital is sourced primarily from private funds (ensuring that every qualified application can be funded without delay upon approval);

2. The PACE legal framework creates the foundation for a PACE ecosystem designed to ensure that private-sector players (funders, administrators, consultants, contractors) actively engage in promoting and delivering PACE financing and services;

3. Recognition that Residential PACE and Commercial PACE are related but distinct programs in which:

   1. R-PACE is simple for ​the homeowner to quickly review and get approved, profitable for contractors to promote, and governed by a robust homeowner protection program; and

   2. C-PACE is delivered with a minimum of administrative overhead and review, relying instead on the due diligence of PACE funders and C-PACE borrowers to undertake suitable financial viability analysis prior to funding.

4. Governments limit their involvement to residential consumer protection oversight and program compliance by private sector players

5. Municipalities limit their engagement to collection of the PACE loan payments and transfer all other PACE administrative responsibilities to third party administrators.

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Jurisdictions in the USA that have adhered to all of the foregoing factors have seen PACE dramatically accelerate the implementation of GHG-reducing measures in residential and commercial buildings, while jurisdictions that have failed to do so have seen their PACE programs underperform at best or simply die for lack of interest.

 

Although the PACE financing tool appears straightforward, the PACE enabling legislation plays a crucial role in nurturing a thriving and robust PACE ecosystem. When the enabling legislation is based on success, it fosters a mutually beneficial environment for all stakeholders involved. PACE leverages the private sector's profit motive to support public sustainability goals, which results in a group of "volunteer" PACE advocates and champions who encourage, educate, and persuade clients to upgrade their homes and business facilities. To learn more about the traits of a successful PACE program, refer to the Canadian Home Builders Association's brief on PACE titled "Keys to Developing a Successful PACE Financing Program."