G2EM dba Energy: Target Zero

09/20/2024

1. PACE Market Research For the first several years I assumed PACE was transformational. In 2016 I was able to confirm it. I indexed growth data from the PACENation web page ( https://pacenation.org/ ) for the period 2009 -2016. C(ommercial) PACE and R(esidential)-PACE were recorded and indexed separately. At that time, solar was growing rapidly. Geothermal (the most important technology in terms of GHG reduction) also showed good growth.

It is obvious that R-PACE was growing very, very fast at 76.8% per year.

While C-PACE is growing slower but at 48% per year.

The answer to the original, “Is it transformational?” question is: YES IT IS! The next question is why is there such a big difference between R-PACE and C-PACE? The probable answer is the split incentive issue. Tenants pay the utilities and landlord pays for the assets required to reduce energy consumption. The second is decision making and the conservative nature of business decisions by corporations, mortgage bankers and REITS.

09/18/2024

This is a big deal!

https://www.esgtoday.com/carlyle-commits-to-provide-up-to-1-billion-in-c-pace-financing/?fbclid=IwY2xjawFX4w5leHRuA2FlbQIxMAABHbTv2wQFlqGvOKEq45Tg-QP6jsgErpYJQ1N-2L0h7psHSV_rSoCdbn4lgg_aem_j7O7EJHJkqRGdk5jncNzJgg

Global private capital investment firm Carlyle announced today a new strategic investment in commercial property assessed clean energy (C-PACE)-focused finance company North Bridge, alongside a commitment to provide up to $1 billion in financing to facilitate C-PACE loans by North Bridge. C-PACE is....

09/18/2024

$1 billion

Global private capital investment firm Carlyle announced today a new strategic investment in commercial property assessed clean energy (C-PACE)-focused finance company North Bridge, alongside a commitment to provide up to $1 billion in financing to facilitate C-PACE loans by North Bridge. C-PACE is....

09/17/2024

Commenter: Girard J Gurgick To VA DMME 2021 Hearings on R-PACE in VA.

There are no alternatives to R-PACE

There are no alternatives to R-PACE. For the simple reason that there are no other programs that can provide a long-term financial arrangement that does not subject both the lender and the beneficiary to real estate market valuation risk. The mistake made by nearly everyone interpreting PACE is assuming PACE is a loan and that a HELOC or other loan can be found at a lower interest rate and therefore these other existing loan tools are right for the job. They are not. That’s why their exclusive application is failing us miserably. That’s also why, when R-PACE is allowed, its growth in CA reflected an almost 80% year over year rate of growth among homeowners.
If a Virginia homeowner would like to be environmentally conscientious and responsible an invest in reducing their carbon footprint the best path is most likely insulation, a geothermal HVAC system and if the solar exposure works, a solar PV system. There can be other components of course. But, insulation can reduce the AC tonnage requirement substantially. A high performance home may require only 1 ton per 2,500 sf and in an older home 1 ton may only cover 500 sf. The power requirements obviously differ as substantially. A good system per current code requirements may be a 15 SEER system. Geothermal HVAC can be at an equivalent of 45 SEER. So it uses 1/3 the electricity. It can eliminate the need for a furnace. It can eliminate fossil fuel consumption for heat and hot water as it can supply hot water. Typical calculations show a carbon footprint reduction of 75%. There is no outside compressor noise. What’s more it does not lose efficiency when the air temperature gets really hot. (The ground is still around 60º F.) The combination of better insulation and geothermal HVAC can cut the number of solar panels by about half making solar more affordable and possibly creating a net zero home.
All of this would cost from $25,000 to $60,000 for average homes ranging from Jonesville to Ashburn. If they had that kind of cash, most homeowners would probably rather use it for a new car or a great vacation or other home improvements. With an R-PACE program you can do both!
So, if the position that “the existing tools work” had any merit I could happily agree. However, this has proven to be a red herring argument at best.
We face a huge problem in fighting global warming. My three grandchildren, and yours deserve our best efforts to leave them a planet in the same condition or better than the one we inherited.
Nationally, White House goals for carbon reduction are for 50% of 2005 levels by 2030. Virginia’s goals are for a zero carbon economy by 2045. The questions remain: What do we do to accomplish this? How do we pay for it? We could continue with the indirect carbon taxes that create stricter regulations on power plants, subsidies for cheaper efficiencies such as LED bulbs, we can pay Solar RECS and add to our power bills with Renewable Portfolio Standards instead of carbon credits, (after all if we use no electricity we don’t even need solar panels).
I would instead propose we use R-PACE to fund the changes we need and want.

09/14/2024

The big idea in PACE is to create the capital needed now in a property investment instead of giving out tax credits and ratepayer provided utility rebates. Both credits and rebates provide incentives that can only be given to those that already have the necessary capital to make the investment. With PACE capital available even the poorest family owning a home can have access to upfront cash for energy efficiency and even energy production through solar panels or wind turbines. More importantly, PACE provides a “Design Your Own Assessment” opportunity so PACE capital recipients can create a cash flow positive transaction. In fact., it should be the exception that they do not increase asset value and simultaneously lower monthly costs.

An applicable marketing concept is:
I finished my energy upgrade!
I paid nothing for it!
I am saving the planet!
I am getting $100 per month for doing this.

09/11/2024

What's the big idea behind PACE?

A 2020 PACE Nation projection shows 15% growth. It is important to be aware that actual growth in the first 5 years for the California residential sector was over 80% year over year. Commercial PACE grew much more slowly as a split incentive issue hinders C-PACE.
Creating a Virginia portion for this investment growth, and basing it on population ratio, would suggest an investment potential in VA of $13.344 Billion.
It is likely greater in VA as the R-PACE benefit is greatly understated by using only 15% growth.

09/06/2024

Forward: Paragraphs 3 and 4 of 4
All real properties: residential, commercial, churches, offices, hotels, data centers, grocery stores and other big box retailers, day care centers, colleges, wineries and even farms. Right now because of the 2022 Federal IRA legislation and the VA REC statutes for solar. solar panels are cash flow positive in their entirety to almost all energy users.

PACE should be allowed on all properties in Virginia, both residential and commercial. By design it can benefit homeowners, renters, senior citizens, disadvantaged communities, lenders, home builders, developers, in short the entire community. PACE funds are invested in local communities, by local communities and can transform properties from wasting energy to producing energy.

09/05/2024

R_PACE Forward Paragraph 2 of 4
The biggest question is: do we have a way to capitalize the dollars wasted on future energy bills? The answer is yes. It lies in creating a new form of capital, one that takes advantage of the thirty years or more of energy savings left on the table. This finance form must be secure and not subject to market value swings and adjustment. It must be conveyed to the next beneficiary. It should be cash flow positive to the property. It should avoid requiring additional government programs and investment. It should benefit the community, including local bankers and contractors. Its attributes should include cleaner air and water. The good news is: It is an existing program called PACE or Property Assessed Clean Energy.

09/03/2024

A paragraph a day.
The problem with energy utilization is a legacy issue. Wasting energy is, and has always been the cheaper alternative to greater investment in energy conservation and remains so. Capital is precious. If it can be built cheaply but generates higher energy bills and usage it is almost always easier to pay the higher bill in the future (and generally pass it on to tenants and future owners) than provide additional capital up front for energy conserving products, We insulate poorly, Energy controls are primarily manual, Geothermal HVAC for heating, cooling and hot water is rarely used. Until LED bulbs became nearly ubiquitous, because they are now affordable, the market did not support additional capital for better lightbulbs. These choices remain entrenched and run contrary to societal needs.

08/25/2024

I just clicked on an article about killing weeds on gravel driveways etc. After too much reading to get to the point Indiscovered it was about using boiled water. I will never advocate boiling water to kill weds but, each time potatoes, pasta, corn or vegetables are steamed an opportunity to kill undesirable weeds exists. I use a second pot to bring it to the driveway and keep it clean. Never thought it was a publishable idea.

06/11/2024

Keith's interview podcast for Chaotic Good Tempeh

How do you like your tempeh? Turns out, there's more ways to prepare it then just dropping it in the skillet. Which, yes, is my go-to move. Keith fell in love w

06/11/2024

My son Keith's tempeh commercial: