In today’s development market, many U.S. municipalities and counties are providing incentives for owners and developers to use energy efficient and green infrastructure practices within their new build and retrofit projects. For commercial building owners — who spend $200 billion per year on utilities, with 30% of those dollars essentially wasted through energy inefficiencies — these green building ‘nudges’ couldn’t come at a better time.
PACE (Property Assessed Clean Energy) Financing gives commercial/multi-family property owners and non-profits the opportunity to fund the installation of energy and water efficient technologies — including green roofs and other Green Stormwater Infrastructure — with low-cost, zero-down financing.
PACE loans are funded by private capital (usually via private equity firms) and repaid through a special assessment on your building’s property taxes. By eliminating the need for upfront capital and spreading costs over a long period of time (up to a term of 25 years), a PACE-funded project brings you an opportunity for immediate positive cash flow.
When the efficiencies are realized and the energy, operations, and maintenance savings generated from the green infrastructure project are greater than the annual PACE loan repayment, you as a business owner or developer can feel good about going green while you build yourself a more solid financial future, freeing up money to use elsewhere on other projects or investments.
PACE financing is not a new concept, but it’s one that’s relatively new to us in Michigan. In a state that’s known as one of the more challenging to close on a PACE-related project, we’re proud to have been an integral part in figuring out how to make it work.
In 2020, we completed Michigan’s first PACE-funded green roof project — the Belt Line Center in Detroit, valued at just over $1 million. Not only was it the first of its kind in the state, but it’s currently the first GSI project that was solely funded by PACE in the United States. It was also the very first PACE project to include any form of Green Stormwater Infrastructure in Wayne County, Detroit’s home.
As the trusted contractors who installed Michigan’s first and soon-to-be second PACE-funded green roofs, we sit in a unique position among the industry’s clean energy and stormwater management players. And we’re ready to take this model nationwide.
We’ve already proven the private-finance model is possible in both urban and rural counties, and have relationships with several PACE funders who are waiting to finance your qualifying Green Stormwater Infrastructure (GSI) project.
Contact us today so we can help introduce you to the lenders that best fit your project’s goals.