Commercial PACE – Property Assessed Clean Energy

Commercial PACE is a financing mechanism to allow commercial property owners to finance energy improvements for existing buildings over a long term.

Pursuant to G.L. c. 25A, sec. 6(13), MassDevelopment Finance Agency (MDFA), with the technical assistance of DOER, launched a Property Assessed Clean Energy (PACE) program for commercial and multifamily buildings. PACE Massachusetts allows owners of commercial, industrial, and multifamily (5 or more units) properties to make energy improvements to existing facilities and finance the improvements over a long term (up to 20 years). The loan is repaid via a municipal betterment assessment on the property and attaches to the property so the benefits and payments flow to subsequent purchasers. For details about financing and to apply, visit the MassDevelopment Website.

DOER's Role in CPACE

DOER reviews PACE Massachusetts applications to ensure that savings and costs are substantiated and meet the Savings to Investment Ratio requirements (savings outweigh the costs). New construction projects that comply with the PACE MA Whole Building Performance pathways are deemed to be cost-effective under the Stretch Code Pricing Analysis. 

Projects eligible under PACE Massachusetts include:

• Retrofits that reduce energy consumption
• Installation of renewable energy systems
• New Construction that falls under one of the following categories and meets PACE MA qualifying criteria
  • New building construction;
  • Large addition (greater than 20,000 square feet or 100% or more of the existing building size) to an existing building;
  • Alteration Level 3 (affecting greater than 50% of the area) to an existing building;
  • Change of use to an existing building;

Please see the PACE Massachusetts Guideline for more information about eligibility.

Owners can participate in PACE Massachusetts if the municipality where the property is located has opted in by a majority vote of the city or town council or the board of selectmen, as appropriate. MassDevelopment has an up-to-date list of municipalities that have opted into PACE.

PACE MA Technical Guideline Updated

Based on feedback received since the release of the technical guidelines for new construction in May 2023, DOER proposed updates that were posted for public comment in February 2025. The revised guidelines were finalized in March 2025. They can be found in Appendix B of the Massachusetts Commercial Property Assessed Clean Energy (PACE MA) guidelines.

A summary of the March 2025 updates can be found in the summary of proposed changes to PACE MA technical guidelines for new construction.

View a summary of proposed changes to PACE MA technical guidelines for new construction in Español, 简体中文; and 繁體中文.

Last updated:	January 28, 2025