NYC’s Revolutionary PACE Financing Makes PTAC Upgrades Affordable for Building Owners in 2025
New York City property owners facing the costly challenge of replacing outdated PTAC units now have access to groundbreaking financing options that can transform energy efficiency upgrades from a financial burden into a strategic investment. NYC Accelerator Property Assessed Clean Energy (PACE) is an innovative financing tool that helps commercial and multifamily building owners fund energy efficiency and renewable energy projects, offering long-term, fixed-rate financing covering up to 100% of project costs.
Understanding NYC’s PACE Financing Revolution
Local Law No 96 established PACE, the City’s sustainable energy loan program, which is considered companion legislation to Local Law No 97 and is part of the Climate Mobilization Act. This innovative program addresses a critical need: LL97 requires large existing buildings (over 25,000 sq ft) in New York City to reduce their carbon emissions by 40% by 2030 and 80% by 2050.
What makes PACE financing unique is its structure. PACE financing is provided by private capital providers (no public funds are deployed) through voluntary special tax assessments, with repayment made through the property tax bill over a long period of time, generally matching the estimated useful life of the equipment involved in a project.
Key Benefits for PTAC Replacement Projects
For building owners considering PTAC upgrades, PACE financing offers several compelling advantages:
- 100% Financing Coverage: PACE offers long-term, fixed-rate financing, covering up to 100% of project costs with no cash up-front from the owner
- Extended Repayment Terms: Projects are financed over the useful life of the improvements with fully amortizing terms generally between 25-32 years
- Retain Incentives: All tax credits and utility incentives stay with owners for the term of the assessment
- Non-Recourse Financing: Funding is non-recourse with no technical default provisions and underwriting tied to property financials
Recent Program Enhancements in 2025
The PACE program has seen significant updates that make it even more accessible for PTAC replacement projects. Commercial Property Assessed Clean Energy (“C-PACE”) financing is now available in New York City for New Construction Projects and Major Renovation Projects, following recent updates to PACE Guidance from New York State and the New York City Accelerator Financing program.
Particularly relevant for PTAC upgrades, Retrofit Projects that result in full electrification are now designated as “pre-qualified,” exempting them from the Savings-to-Investment Ratio (“SIR”) requirement. This change significantly streamlines the approval process for property owners looking to upgrade to energy-efficient PTAC systems.
Eligible Properties and Requirements
PACE financing is available to a wide range of properties in NYC. The property must be located in one of the five boroughs of New York City and must not be a one- or two-unit residential building. NYC PACE is designed to help commercial properties of all types, from multifamily to mixed use and beyond.
Property owners must meet basic eligibility requirements, including being current on property taxes. The program is administered by the New York City’s Mayor’s Office of Climate & Environmental Justice, in partnership with the New York City Energy Efficiency Corporation (NYCEEC).
Working with Qualified PTAC Specialists
When considering PTAC Replacement NYC projects, partnering with experienced suppliers and installers is crucial for maximizing PACE financing benefits. Brothers Supply Corporation, a family-owned HVAC contractor with over 50 years of experience in the New York area, exemplifies the type of trusted partner property owners need.
Located in Long Island City, Brothers Supply has built its reputation on transparency, quality workmanship, and comprehensive PTAC expertise. The company’s deep understanding of both legacy and modern PTAC systems makes them an ideal partner for property owners navigating both Local Law 97 compliance requirements and PACE financing opportunities.
The Application Process
Accessing PACE financing involves working with qualified lenders. NYC Accelerator PACE Financing loans may only be originated by qualified PACE lenders, with NYCEEC overseeing PACE applications and approving PACE lenders.
The process begins with preliminary project assessment, where the intake fields in the program application capture data on the project to ensure the borrower qualifies for the loan and the property is eligible, with the lender submitting a preliminary application that includes a brief project narrative.
Looking Ahead: A Sustainable Future
As New York City continues to lead the nation in climate action, PACE financing represents more than just a funding mechanism—it’s a pathway to a more sustainable urban future. For property owners facing PTAC replacement decisions, the program offers an unprecedented opportunity to upgrade systems without the traditional financial barriers.
The combination of 100% financing, long-term repayment schedules, and streamlined approval processes for electrification projects makes 2025 an ideal time for property owners to consider PTAC upgrades. With experienced partners like Brothers Supply providing the technical expertise and PACE financing providing the financial flexibility, building owners can confidently invest in energy-efficient PTAC systems that will serve their properties for decades to come.
As the program continues to evolve and expand, property owners who act now can position themselves at the forefront of NYC’s energy efficiency transformation while ensuring their buildings remain competitive and compliant with increasingly stringent environmental regulations.