Michigan business owners are soon to more fully reap the benefits of green financing, thanks to new legislation that broadens the scope of the state’s Property Assessed Clean Energy (PACE) program. With the ink still fresh on two bills, commercial property owners will find it easier to secure long-term funding for energy-efficient and environmental upgrades that could not only cut costs but also improve the health of their local communities.
The changes to the PACE program, outlined by Macomb County, are aimed to encourage more property owners to quickly take advantage of the financing available for a variety of projects. These projects range from energy and water efficiency improvements to installing renewable energy systems. Essentially, the program has been revised to allow owners to more conveniently decide to confidently move forward with these upgrades without certain previous restrictions.
Perhaps most notably, the updated program comes with a sweetened offer: Property owners no longer need to provide an energy savings guarantee for new constructions, a stipulation that was required before for projects exceeding $250,000. Additionally, retrofitting projects can now opt to waive this guarantee altogether. This opens up the possibilities for more diverse and ambitious green projects potentially transforming Michigan’s commercial buildings into beacons of sustainability.
In an environmental win, PACE will also now support projects aimed at addressing various ecological hazards. These include efforts to mitigate contamination from substances like lead, heavy metals, or PFAS in drinking water systems, as well as correctly strengthening properties against the wrath of severe weather. It's a critical step forward for Michigan, taking on the challenge of environmental resilience head-on.
Financing via PACE is designed to be both accessible and advantageous. Loans span anywhere from 10 to 25 years and come with a fixed interest rate. This type of financing ties into the property itself, eliminating personal credit impact and allowing the loan to transfer with the property sale, thus providing a sustainable approach to long-term property investment.
To qualify for the program, according to Macomb County’s Department of Planning and Economic Development, properties must see a monthly utility spend over $5,000, ensure the cost of energy projects goes beyond $100,000 with no set maximum, hold a valuation of more than $400,000, and be current on property taxes.
For Michigan businesses looking to embrace clean energy and environmental awareness, the PACE program appears as an increasingly attractive option. Those considering making the leap into more efficient and environmentally-friendly operations might find their catalyst in the program's expansion. Business owners in Macomb County interested in exploring PACE funding opportunities are encouraged to reach out to Curt Chowanic at [email protected] or call 586-242-3643 for more information.
