PACE Financing for Energy Projects
- No upfront capital required
- 100% off-balance sheet financing
- Financing through Property Tax Assessment
- Long term financing, typically 10 – 20 years
- Guaranteed energy savings for projects greater than $250K
- Cash Flow positive from day one
- PACE financing “runs with the land”
What is PACE?
PACE (Property Assessed Clean Energy) is a Michigan public act introducing an innovative way for owners of industrial, commercial, non-profit and multi-family properties to finance 100% of the costs of energy efficiency upgrades, on-site renewable energy projects, and water conservation measures.
PACE financing allows a property owner to use the property tax mechanism to finance energy improvement projects. The property owner voluntarily takes on a Special Assessment that is paid off as part of the property tax bill.
Which Projects Qualify for PACE?
Michigan Public Act 270 (Property Assessed Clean Energy Act) allows this special form of financing for projects that increase energy or water efficiency or that add renewable energy generating capability. The only exclusions are incinerators and digesters.
Examples of PACE projects
- HVAC systems including boilers and chillers
- Energy control systems
- Solar, wind & combined heat and power systems
- Geothermal and biomass systems
- Building envelope improvements
- Water usage improvements
- Manufacturing process improvements
- High speed doors
- Compressed air systems
Where Has PACE Been Adopted?
Many states in the US have adopted PACE programs or have programs under development. In Michigan PACE has been adopted by a growing number of counties and cities. More about the PACE programs in Michigan….
Want to Learn More?
To find out more about PACE financing and to see if your energy efficiency project qualifies, please contact Climate Technologies.