Last week Montcalm County became the 10th county in Michigan to approve PACE financing. While the benefits of PACE are numerous there is one benefit that is especially attractive to commercial, industrial, non-profit and multifamily property owners. That is, to qualify for PACE financing, the entire project – including design, equipment, materials, labor and financing – must be paid for by the cash that is generated from reducing wasted energy!
The unanimous Montcalm County vote at the county commission meeting last week will launch a green renovation of a large community multifamily housing facility. The renovation will upgrade the facility’s heating equipment to a far more energy efficient system. Before the vote this was only an unfunded dream. Following the vote this renovation, as well as many others like it, can now move forward with easy access to funds!
What was voted on that made such a dramatic difference? The 11 – 0 vote was to approve the county becoming a Property Assessed Clean Energy (PACE) district. Now that PACE has been approved, qualifying property owners can easily choose energy efficiency by securing the needed funding and, per the requirements of PACE, result in a positive cash flow. For-profit businesses will actually be more profitable by going forward with an energy efficiency upgrade! As a result of the upgrade, the building will appreciate in value and, for leased space, most likely earn higher rates.
“The fact that PACE enables a building owner to undertake an energy efficiency project that is cash flow positive will resurrect many that have been shelved due to capital and ROI concerns, as well as open the door to many new ones.” Curt Monhart, V.P. The Energy Alliance Group of Michigan
PACE loans are also non-recourse and “off-balance sheet”. Financing up to 20 years allows for large capital projects like solar and geothermal. Plus there’s no need to pay off the loan upon sale – PACE assessments remain with the property. And, with PACE financing, energy efficiency performance is guaranteed for projects totaling $250,000 and above.
“Owners of commercial and industrial property in the U.S. spend $202 billion each year on energy for their operations – yet 30% of that cost is unnecessary. That’s $60 billion wasted every year due to inefficiency.” Lean and Green of Michigan
Property Assessed Clean Energy helps commercial property owners save money while at the same time reducing their energy expenses. If you’re interested in becoming more energy efficient click HERE for a free report – 10 Questions to Ask Before and Energy Efficient Upgrade.