The least amount of energy at the lowest possible cost
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Using the least amount of energy at the lowest possible cost is a smart business decision. When companies begin to realize that upgrading their energy technology results in big savings, their first question is how to fund the upgrades. The PACE program is one way to answer that question.
PACE is a no-money-down, positive cash flow option
PACE stands for Property Assessed Clean Energy and it’s a cost effective way for industrial and commercial property owners to pay for their energy intensive technology renovations while funding 100% of the costs! One of the most appealing aspects of the program is that the savings, in relationship to the project costs, must be positive from day one as a condition for project approval. These types of upgrades must pay for themselves. It is actually costing owners money if they DON’T initiate upgrades when you factor in the loss of the positive cash flow that could be generated from an upgrade.
“It is costing you money by delaying energy upgrade projects.”
The PACE program is a national program but it is administered at the local level. In a PACE approved district a property owner can use the property tax mechanism for repayment of energy improvement financing. The property owner voluntarily takes on a special assessment which is then paid off as a portion of their property tax bill.
The PACE program helps property owners pay for energy upgrades but what makes it especially attractive is that the repayment mechanism lowers the risk to lenders. Low risk means more money available for upgrades. This unique combination has opened up large opportunities for energy cost saving projects as illustrated by the graph below. PACE projects are exploding due to the fact that they save money while lowering risk!
PACE Projects in $Millions
Source PACENow
What improvements qualify for a PACE program? Typically it’s for upgrades or construction that reduces energy or water use or generates renewable energy. A New York Times article illustrates one example of how the PACE program was used to cut electric bills through the installation of solar panels.
“Because the financing is secured by the County’s property tax authority, lenders provide finance terms up to 20 years, which transforms many energy efficiency and renewable energy projects that are otherwise prohibitively expensive into a no-money-down, cash flow positive proposition.” PACENow
If you want to know if a project under consideration qualifies for the PACE program, a PACE Project Calculator has been created by The Energy Alliance Group of Michigan. By simply entering nine property variables the calculator will provide an instant PACE Project Viability Score that can help determine if PACE may be an option for an intended project. The calculator is a great first step for any project that will need financing for energy efficiency upgrades. Simply click HERE to run the calculator.
The Energy Alliance Group of Michigan works with businesses and commercial building owners desiring increased profitability and environment friendly facilities through energy efficiency. That process often includes a reduction in energy use as well as an increase in renewable energy production.
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