The River, a mall in California’s Coachella Valley, took advantage of Property Assessed Clean Energy (PACE) financing to install a 667-kilowatt solar carport and a water pumping and control system energy efficiency project. Together they will offset 95 percent of its common area electric use saving its tenants over $200,000 annually. The center partnered with K2 Clean Energy Capital to find $2.4 million in funding for the projects, which will break ground in early 2017.
“The PACE financing of this project allows for the pass-through of both the PACE payments as a property tax assessment and the energy cost savings as [common area] charges to the tenants of the mall. The net effect to the tenants will be a reduction in costs” said Stephen Tsu, co-founder of K2 Clean Energy Capital. “This project showcases how PACE financing can be utilized for multiple renewable energy and energy efficiency initiatives to create a winning solution for both the property owner and the tenants.”
Under PACE financing projects are financing through an assessment against the property, which is then repaid through taxes or another mechanism. In this case funding for the PACE project was provided by Sausalito, CA’s CleanFund Commercial PACE Capital.
“We are delighted to support K2 Clean Energy Capital and The River with CleanFund’s PACE financing of this exciting project” explained Chris Robbins, CleanFund’s managing director. “The demand for commercial PACE financing continues to grow rapidly because it provides cost-effective, long-term financing for renewable energy, energy efficiency and water conservation measures for most commercial properties.”
“This project demonstrates our commitment to the environment and to continued modernization at The River. In addition, our tenants will directly benefit from the cost savings achieved,” said Ungar Kung, director of CheerLand, which owns The River. “K2 Clean Energy Capital guided us through each step of this process from the initial energy audit, development of the engineering solutions, contractor bidding and contract negotiation, through to structuring of the PACE and tax equity financing. Following a thorough selection process, we selected Renova Energy Corp, a leading solar provider based in the Coachella Valley, to construct the solar system using American-made, SolarWorld PV modules.”Tweet