Louisville Metro has partnered with Energize Kentucky to expand the EPAD program.
Start your EPAD project today at kypace.org!
Louisville’s Energy Project Assessment District (EPAD) program is a tool that allows commercial property owners to repay private loans for energy efficiency, renewable energy and water conservation measures through a voluntary assessment administered by the Jefferson County Sheriff in the same manner as a property tax bill. The program allows property owners to secure more favorable financing terms than with traditional financing mechanisms.
EPAD is the official PACE financing program of Louisville-Jefferson County to enable Property Assessed Clean Energy.
The Benefits of EPAD
- No Down Payment. EPAD capital comes from private sources. Unlike traditional financing, property owners can finance up to 100% of an energy project’s cost for EPAD projects.
- Increased Cash Flow. Improvements financed through EPADs are designed to reduce building operating expenses thereby improving the cash flow of the property owner.
- 15-30 Year Term. Repayment terms can be extended to match the useful life of the eligible improvement.
- Fixed Rate / Fixed Payment. EPAD financing rates and terms are fixed for the life of the loan.
- No Personal Guarantee. The responsibility of repaying the loan through the annual EPAD assessment transfers to the new owner of the property upon sale or transfer.
- Preserved Credit Lines. As the repayment is tied to the property and not the property owner, it enables property owners to reserve other lines of credit for working capital or non-energy related improvements.
- Increased Property Values. Improvements financed through EPAD have been demonstrated to increase the value of properties and may reduce maintenance and repair costs. In addition, energy improvements may increase the efficiency, health, and comfort of a building, making it more attractive to tenants and future owners.
Louisville Case Studies
|Project Name||Construction Type||Property Type||EPAD Amount|
|110 Weisser Ave||New Construction||Multi-family housing||$159,062|
|Springhurst Tennis Club||Retrofit||Fitness center||$403,751|
|La Quinta Del Sol||New Construction||Hotel||$1,745,737|
|Christ Church United Methodist||Retrofit||House of worship||
How EPAD Financing Works
How to Participate
Find the eligibility form, application, and more at Energize Kentucky.
The Program is only available to commercial properties located within Jefferson County. Eligible property types include office, retail, industrial, agricultural, non-profits and multi-family residential units consisting of 5 or more dwelling units. Commercial properties include for-profit businesses and non-governmental, non-residential, tax-exempt properties such as privately-operated community centers and hospitals.
An eligible energy efficiency, water efficiency or renewable energy improvement project must have a minimum cost of $20,000, a useful life of at least 5 years, and be permanently affixed to the property or building. Additionally, the project must reduce energy or water usage or generate renewable power for the property. Projects can include rooftop solar, high-efficiency equipment and appliances, cool roofs, insulation, and HVAC upgrades. See below for a non-exhaustive list of possible building improvements.
Lenders and Contractors
All lenders and contractors are initially eligible to participate in Louisville's EPAD Program. However, Louisville Metro Government reserves the right to bar lenders and contractors from participating in EPAD projects if they are found to be in violation of program goals.
- Kentucky Revised Statutes Sections 65.206 - 65.209 (the "EPAD Act") authorized Louisville and other consolidated local governments in Kentucky to establish an EPAD program.
- Louisville Metro Code of Ordinances Chapter 165 designates the entirety of Louisville Metro as an Energy Project Assessment District.
Program News & Updates
- Special Earth Day Announcement: City partners with Energize Kentucky, April 2021
- Louisville leverages $2 million investment toward energy efficiency and renewable energy projects, January 2020
- City and Citizens Union Bank celebrate partnership on the first Energy Project Assessment District project, December 2018
For more information on Louisville's EPAD Program, contact Chris Jones at Energize Kentucky | [email protected] or (859) 468-5598.