K2 PACE Financing Services
K2 Clean Energy Capital provides PACE financing services for Developers on new construction projects and for commercial Property Owners seeking to upgrade or improve their properties. We can manage the project due diligence, municipal & lender approval, and financial underwriting details so your team can focus on closing and executing solar projects. Our financing services include:
- Check on project technical & financial eligibility (LTV) & conduct due diligence on property. Conduct energy audits where required
- Provide PACE financing project quotes & cash flow analyses
- Coordinate with local county/municipality to gain approval for PACE financing
- Work with existing lender to gain consent for PACE financing
- Complete and submit PACE applications
- Obtain multiple sources of qualified financing from investors to ensure competitive rates. Finalize PACE financing term sheet
- Coordinate and consolidate underwriting documents as required
- Negotiate progress payments with investors and PACE administrators for construction cash flow
- Coordinate with PACE program administrators for submittal of required documentation
New Construction Projects
For New Construction projects, PACE can typically finance up to 25% LTV of the as-stabilized valuation. Funding will also depend on the total amount of PACE eligible measures (typically 25-30% LTC on new construction projects), the total leverage %, and the DSCR at stabilization. K2 is happy to provide a no-obligation technical evaluation and indicative terms. All we need are the project property address, construction budget, and proforma to help you get started!
K2 now offers the PACE POWER STACK with both PACE Financing and “PACE Friendly” Construction Debt for the complete capital stack solution. This can provide up to 85% total leverage for the Developer and can utilize either recourse or non-recourse debt for all asset types. K2’s process is transparent, and we represent the Developer’s best interest in the process to ensure the optimal financing terms are obtained.
Our PACE Brokering Services include:
- Verification of project technical & financial eligibility (LTV) & due diligence on property.
- Development of PACE Engineering Report documenting eligible measures and cost savings. Completion of energy audits where required.
- Development of competitive PACE Financing Request for Proposal (RFP), collection of term sheets from multiple PACE investors, and
- Presentation of Comparative Financial Analysis of all terms to the Developer
- Negotiation of PACE Financing terms for Developer
- Coordination with local county/municipality and County PACE Administrator
- Introduction to “PACE Friendly” Debt providers and meeting with debt lender to gain consent for PACE financing
- Completion and submittal of PACE application
- Management of underwriting process and coordination with investor
- Negotiation of progress payments with PACE funder and Debt provider for construction cash flow
Retrofit & Upgrade Projects
On retrofit and upgrade projects, PACE financing can fund up to 100% of all eligible measures including a portion of the soft costs for the design and permitting of the project. We represent the Property Owner’s best interests to evaluate renewable and energy efficiency technologies and to obtain the most cost effective long-term solutions to reduce operating expenses.
- Objective technical analysis of renewable energy and energy efficiency technologies
- Solar PV System Sizing, Cost Estimating, and Savings Analysis. Contractor RFP development & bid management where required
- Conduct energy audits where required
- Provide PACE financing project quotes & Cash Flow analyses. Obtain multiple sources of qualified financing from investors
- Coordinate with local county/municipality and County PACE Administrator to gain approval
- Work with existing lender to gain consent for PACE financing
- Complete and submit PACE application
Our services ensure the Property Owner, Lender, and Investor of the project value, realized cost savings, bankability of the technologies, system safety, and reliability.