PACE (Property Assessed Clean Energy) Financing
What is PACE?
Property Assessed Clean Energy, or PACE, is a long-term financing tool for commercial property owners to pay for energy efficiency, water efficiency, and renewable energy upgrades. Property owners receive 100% pre-funding for energy saving upgrades on their facilities and pay the PACE loan back through a special assessment on their property taxes.
Benefits of Lean & Green Michigan PACE financing:
- 100% upfront financing
- Long-term financing from 10 to 25 years
- Fixed interest rate
- Positive Cash flow! For projects over $250,000, your contractor must guarantee that the total savings generated from your PACE project will be greater than the investment.
- The loan runs with the land, meaning the loan is attached to your property, not to you as the property owner. It does not impact your credit and it transfers upon sale.
- Virtually any energy efficiency, water efficiency, or renewable energy project
- High utility costs: Properties with a utility spend higher than $5,000 per month.
- Project size: The cost of the energy project should be greater than $100,000, with no formal upward limit!
- Property Value: The property should be worth more than $400,000.
- Current on Property Taxes: Properties must be current on their property taxes and any other property tax obligations to qualify for PACE financing.
To learn more about the PACE Program:
- PACE website
- Here are case studies for PACE projects that have been completed, including how much savings property owners are realizing by upgrading their properties.
- A resolution adopting an amended Property Assessed Clean Energy Program for Washtenaw County