The Energy Alliance Group of North America is working with PACE Equity as one of its alliance partners, both looking to create a vibrant PACE (Property Assessed Clean Energy) market in Michigan and other states.
“It’s all about making more buildings in Michigan energy efficient, increasing the velocity of closing on PACE projects in Michigan, and driving the modernization of some of these older buildings,” said Beau Engman, founder of the PACE Equity, headquartered in Milwaukee, WI, with branch offices in seven other locations, including Michigan and Ohio.
The relationship between EAG and PACE Equity is unique, Engman added, because PACE Equity, besides investing in PACE projects, also develops PACE projects, like The Energy Alliance Group. “We see value in the relationship because The Energy Alliance Group is out there in Michigan developing projects. We want EAG to be successful doing that, with PACE Equity providing capital for those projects,” he said.
“When I initially contacted Beau to introduce myself and EAG, he pointed out that in essence we were competitors with each other. I assured him that there were plenty of opportunities for both of us in the markets we share. I think there is more value in our companies supporting each other’s growth, than competing against each other,” said Scott Ringlein, CEO of The Energy Alliance Group.
Engman believes with his company’s experience, PACE Equity has learned how to streamline PACE projects, in terms of consistency, the process, pricing and timing of projects. “It’s easier to manage expectations and to be successful with your business proposals once those areas are part of each PACE project,” he said.
“We know how important it is that someone is driving PACE project development, and we see that Scott (Ringlein, CEO of The Energy Alliance Group) is doing that. That’s why we’re supporting him and his company.”
EAG also recently launched The Energy Alliance Group of Ohio and has begun PACE project development in Ohio, another state where PACE Equity works. “In fact, Kevin Moyer, our Chief Investment Officer, also works with the BetterBuildings Northwest Ohio program, the PACE energy division of the Toledo/Lucas County Port Authority. They have completed more than 100 PACE projects in Ohio,” Engman said.
Engman has been involved with PACE for years and is on the board of PACE Now, a national non-profit supporting the PACE financing method. Previously, Beau was Vice President of Commercial Energy Solutions for Johnson Controls, managing the delivery of energy efficiency solutions to Global 1000 and commercial real estate companies across North America.
“As far as I’m concerned, any PACE project is a good project. We’re excited to be able to work with The Energy Alliance Group to make these buildings more energy efficient, while allowing owners to achieve their business plan,” Engman added.
Many of the state statutes governing PACE are slightly different. However, there are similarities. PACE Now describes PACE like this:
“PACE (Property Assessed Clean Energy) is a simple and effective way to finance energy efficiency, renewable energy, and water conservation upgrades to buildings. PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any property – homes, commercial, industrial, non-profit, and agricultural.
“Property owners across the US are using PACE because it saves them money and makes their buildings more valuable. PACE pays for 100% of a project’s costs and is repaid for up to 20 years with an assessment added to the property’s tax bill. PACE financing stays with the building upon sale and is easy to share with tenants. State and local governments sponsor PACE financing to create jobs, promote economic development, and protect the environment.”
PACE Equity is working toward having representation in every state that has an active PACE program.
According to its website: “PACE Equity is in the business of enabling building owners and contractors to develop clean energy projects with PACE financing. We have a unique infrastructure for what is the greatest need in the evolving PACE marketplace – securing and developing projects. The strategy at PACE Equity is to build an infrastructure that can be leveraged in local markets across the country. PACE Equity’s mission is to be the national leader in developing PACE projects.”
Besides Michigan and Ohio, PACE Equity is working in Wisconsin, Florida, Texas, California, Missouri. Like PACE Equity, EAG’s business plan and mission also focuses on being nationally recognized in developing PACE projects. “It has been a natural fit between both organizations,” Ringlein said. “Both organizations have similar goals and are entering similar markets. This partnership has only strengthened each of our positions.”
The Energy Alliance Group of North America works with businesses and commercial building owners desiring increased profitability and environmentally friendly facilities through energy efficiency. That process often includes a reduction in energy use as well as an increase in renewable energy production.