- Banned
- #1
MJ once made the excellent point that math often exposes a "bullshitter," and the corollary is also true: math logically supports the truth and helps establish the facts.
To potential clients and strategic partners, I began speaking about PACE many years ago. I am one of the few people actually in the PACE nation, having created a $3,300,000 energy efficiency project on a Class A office building downtown Columbus, Ohio.
According to a 3rd Quarter market report on PACE transaction and project activity in the commercial sector, the 3rd quarter 2016 market grew 380% relative to the 3rd quarter 2016 market activity.
Amazingly, the $3,300,000 PACE deal my team closed and completed would have constituted 33% (one-third) of the 2015 3rd quarter market.
The PACE program reflects the characteristics and aspects of a "fast lane" opportunity with almost textbook example quality. Consider, for instance, the aspect of scale. The scaleability of the business depends on the ultimate size of the marketplace. If your potential customers exist all over a city, this pales in comparison to an opportunity with customers in an entire state - or an entire region... or the whole country.
I will continue to predict that the PACE market will grow by leaps and bounds, for years to come.
The report states:
"In Q3 2016, commercial PACE financing scaled up with 104* new projects financed and $44.6 million invested. These numbers represent a $19.6 million increase in investment from the previous quarter, and a 380% year-over-year growth compared to Q3 2015, when PACE providers financed $9.3 million in commercial PACE projects. In September, the largest PACE project yet – a $10 million solar installation – received financing from CleanFund Commercial PACE Capital through the CaliforniaFIRST PACE program. This project is the “first-ever commercial solar installation at a U.S. ethanol plant,” according to Neil Koehler, CEO of Pacific Ethanol, which will reduce the carbon intensity and cost of producing biofuels at the plant through an annual cost savings of over $1 million. One larger project, at $20 million, was also given preliminary approval by Missouri’s Set the PACE St. Louis program in August, and that project could close in early 2017. PACE providers in Missouri also set a milestone for the largest agricultural PACE project: a $4 million project at a hog processing facility was financed by Twain Financial Partners through the Show Me PACE program, using RAHILL Capital as a project consultant. The facility’s owners will use the funds to make lighting, HVAC, and roofing improvements, purchase efficient manufacturing equipment, and install a Fig. 1: Cumulative C-PACE Financing (2009 - Dec 2016) * One program has reported increased numbers of smaller projects completed on small businesses and multifamily properties. Excluding these projects, the quarter’s numbers are: 43 new projects financed and $38MM total funding. See Figs. 5 and 7 for project size breakdowns. solar PV system. In Colorado, the CO-PACE program, which launched earlier this year, closed its first C-PACE project in September. Urban Green Development, a sustainable real estate developer, used $320,000 to make efficiency improvements and for a 100kW rooftop solar array. In the same month, Renew Financial’s new RenewPACE program launched in select cities in Florida to provide residential and commercial PACE financing. California remained the top state for commercial PACE investment with approximately $23.7 million financed in the quarter, followed by Connecticut at $6.1 million."
To potential clients and strategic partners, I began speaking about PACE many years ago. I am one of the few people actually in the PACE nation, having created a $3,300,000 energy efficiency project on a Class A office building downtown Columbus, Ohio.
According to a 3rd Quarter market report on PACE transaction and project activity in the commercial sector, the 3rd quarter 2016 market grew 380% relative to the 3rd quarter 2016 market activity.
Amazingly, the $3,300,000 PACE deal my team closed and completed would have constituted 33% (one-third) of the 2015 3rd quarter market.
The PACE program reflects the characteristics and aspects of a "fast lane" opportunity with almost textbook example quality. Consider, for instance, the aspect of scale. The scaleability of the business depends on the ultimate size of the marketplace. If your potential customers exist all over a city, this pales in comparison to an opportunity with customers in an entire state - or an entire region... or the whole country.
I will continue to predict that the PACE market will grow by leaps and bounds, for years to come.
The report states:
"In Q3 2016, commercial PACE financing scaled up with 104* new projects financed and $44.6 million invested. These numbers represent a $19.6 million increase in investment from the previous quarter, and a 380% year-over-year growth compared to Q3 2015, when PACE providers financed $9.3 million in commercial PACE projects. In September, the largest PACE project yet – a $10 million solar installation – received financing from CleanFund Commercial PACE Capital through the CaliforniaFIRST PACE program. This project is the “first-ever commercial solar installation at a U.S. ethanol plant,” according to Neil Koehler, CEO of Pacific Ethanol, which will reduce the carbon intensity and cost of producing biofuels at the plant through an annual cost savings of over $1 million. One larger project, at $20 million, was also given preliminary approval by Missouri’s Set the PACE St. Louis program in August, and that project could close in early 2017. PACE providers in Missouri also set a milestone for the largest agricultural PACE project: a $4 million project at a hog processing facility was financed by Twain Financial Partners through the Show Me PACE program, using RAHILL Capital as a project consultant. The facility’s owners will use the funds to make lighting, HVAC, and roofing improvements, purchase efficient manufacturing equipment, and install a Fig. 1: Cumulative C-PACE Financing (2009 - Dec 2016) * One program has reported increased numbers of smaller projects completed on small businesses and multifamily properties. Excluding these projects, the quarter’s numbers are: 43 new projects financed and $38MM total funding. See Figs. 5 and 7 for project size breakdowns. solar PV system. In Colorado, the CO-PACE program, which launched earlier this year, closed its first C-PACE project in September. Urban Green Development, a sustainable real estate developer, used $320,000 to make efficiency improvements and for a 100kW rooftop solar array. In the same month, Renew Financial’s new RenewPACE program launched in select cities in Florida to provide residential and commercial PACE financing. California remained the top state for commercial PACE investment with approximately $23.7 million financed in the quarter, followed by Connecticut at $6.1 million."
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