Business owners and commercial property owners in the City of Ann Arbor now have access to an exciting new financing program for energy projects. With the official launch of the State of Michigan’s first Property Assessed Clean Energy (PACE) program this month, property owners within city limits can obtain low-interest, fixed-rate, long-term financing for energy efficiency and renewable energy projects at their commercial properties.
Clean Energy Coalition and the City of Ann Arbor have been working in close partnership over the past year to lay the groundwork for the PACE program. With City Council approval of a fee resolution in early January, the last implementation hurdle was cleared and program staff are now actively marketing the program across the city.
To be eligible for PACE financing, a property must have a detailed energy analysis that identifies possible energy projects and calculates energy and cost savings from these projects. If the identified project costs fall within certain program requirements related to size, property value and return on investment, the property owner enters into an agreement with the City that guarantees financing for the project. Property owners receive the funds upon project completion and repay the city annually through a voluntary special assessment over 10 years.
Assessments are structured such that annual payments are less than what the property owner is saving in energy costs each year, so savings are realized almost immediately.
“The availability of PACE financing supports economic stimulation across the city, creates jobs in the local construction and clean energy sectors and reduces operating costs for business owners,” said Wendy Barrott, Clean Energy Coalition project manager and the administrator of the PACE program.
While a current energy analysis of the property is a requirement to apply for PACE financing, certain recent energy audits, including those sponsored by the Ann Arbor Downtown Development Authority, will be accepted. For properties that require a new audit, a list of PACE-approved, pre-qualified auditors is available at the PACE website.
Interested business or commercial property owners should contact Wendy Barrott, PACE Program Administrator, by email or phone at 734.794.6430 x43711.
Source: Clean Energy Coalition