Stable Outlook for PACE in 2021

DBRS Morningstar believes the commercial property assessed clean energy (C-PACE) market will grow in 2021, on the heels of unexpectedly positive origination in the latter half of 2020. At the onset of the Coronavirus Disease (COVID-19), market participants were concerned that PACE assessment volume would decline. At first, there was an initial pause in origination activity. However, the pandemic accelerated interest in PACE as both residential and commercial property owners sought ways to finance energy renewal, energy efficiency, and resiliency improvements instead of paying for it all in one lump sum.