February’s Michigan Energy Forum event, Financing Your Commercial Energy Project, will focus on highlighting an array of financial mechanisms that exist to help commercial building owners make their energy efficiency and/or renewable energy project a reality.

1. Energy Forum
February 2, 2012
Wendy Barrott

2. Why Property Assessed Clean Energy?
• Provides attractive financing – not offered by other
sources
• Low, fixed interest rates
• Long repayment terms
• Repayment structured to be less than energy savings
achieved by project
• Serves a public good
• Creates jobs
• Keeps money in the local economy
• Supports economic development

3. Energy savings through PACE
100%
90%
80%
70%
60% Energy Cost Savings
50%
Energy Project
Repayments
40%
Energy + Operating and
Maintenance Costs
30%
20%
10%
0%
Before Energy Project After Energy Improvements After Loan Repayment

4. Who is eligible?
• Commercial properties
– Property subject to Michigan Building Code
– Apartment buildings with 3 or more units
– Tax exempt -- churches, private schools
– Retail, offices, manufacturing
– All properties except those subject to Michigan
Residential building codes
• Single family, duplex, certain townhouses (and
public schools)

5. What is eligible?
• Projects may include:
– Energy analysis (energy audit)
– Insulation and weather sealing
– Lighting and controls
– Heating, ventilation and air-conditioning (HVAC) upgrades
– High-efficiency shower and faucet aerator replacements
– ENERGY STAR Appliances
– New doors and windows
– Solar photovoltaic (electric) systems
– Wind turbines
– Solar thermal hot water
– Ground source heat pumps
– Combined heat and power systems
– Biomass thermal systems

6. Where to find PACE projects

7. How much funding per project?
• Value ratios:
– Cost cannot exceed 20% of the property’s
State Equalized Value
– Lien to value of the property cannot exceed
99% of 2 times the State Equalized Value.
• Energy efficiency is improved before
implementing renewable energy systems
• Proposed improvements and costs are within
the range of $10,000 - $350,000
– Projects > $250,000 require an ESCO

8. Overview of PACE Program
Pre-
application Application Review Installation Tracking

9. Questions?
Wendy Barrott
pace@a2gov.org
734.794.6430 x43714