PACE requires an energy, water, and/or renewable energy audit to designate the scope of the project and to assess the expected energy cost savings of the improvements over their useful life. With a high-quality audit carried out by a certified professional, energy efficiency projects are more likely to deliver the expected savings. The audit cost can be covered by PACE funding following project approval.
Requirements for all audits, regardless of the scope of work, are as follows:
- The Owner chooses their own professional energy auditor meeting the Program eligibility requirements, who must conduct all audits.
- The audit must be conducted on the property within the 12 months prior to submission of the Final Application.
- The measures for which the Property Owner is seeking financing must appear as identified opportunities or recommendations within the resulting audit report.
- The audit must associate energy savings on a per measure basis.
- Determine the expected energy and water saving savings in the following categories: peak savings (kW), electric savings (kWh), electric generation (kWh), water savings (gallons).
- Estimated useful life of each individual measure.
- Assess total project capital cost.
- Determine the key financial metrics of the project including: return on investment, internal rate of return, net present value, and payback time based on the anticipated financing term.
All eligible auditors must comply with the following:
- Certification: auditors must hold a certification from the American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) or the Association of Energy Engineers (AEE). These include Certified Building Energy Assessment Professionals, Certified Energy Auditor and Certified Energy Manager
- Licensing: auditors must hold a current professional engineering license in the State of California or as required by the auditor certification programs listed above
- Experience: auditors must have a minimum of two years' experience conducting audits
See the Program Handbook for more information regarding energy audits.
- Lower operating costs
- Increase property value
- Funds up to 100% of installed costs