November 21, 2013 | Next Steps: Financing solar for your business | Peter Klein: Property Assessed Clean Energy (PACE)
•Download as PPTX, PDF•
1 like•567 views
For many businesses and property owners, the high upfront cost of solar photovoltaic systems remains the single largest barrier to adoption. The solution? Solar financing. Fresh Energy’s solar financing event, the final installment of a three-part Solar Opportunities Series, will introduce participants to the range of current and emerging solar-financing options available in Minnesota. Learn more at fresh-energy.org/solarseries.
Recommended
Recommended
More Related Content
Viewers also liked
Viewers also liked (7)
Similar to November 21, 2013 | Next Steps: Financing solar for your business | Peter Klein: Property Assessed Clean Energy (PACE)
Similar to November 21, 2013 | Next Steps: Financing solar for your business | Peter Klein: Property Assessed Clean Energy (PACE) (20)
More from Fresh Energy
More from Fresh Energy (9)
Recently uploaded
Recently uploaded (20)
November 21, 2013 | Next Steps: Financing solar for your business | Peter Klein: Property Assessed Clean Energy (PACE)
- 1. FRESH ENERGY NEXT STEPS: FINANCING SOLAR FOR YOUR BUSINESS NOVEMBER 21, 2013 PROPERTY ASSESSED CLEAN ENERGY (PACE) Peter Klein Vice President of Finance Saint Paul Port Authority
- 2. HISTORY OF PACE ■ 2008: ■ 2010: ■ 2013: Residential Programs – California Fannie Mae & Freddie Mac Say “No” Current Programs: ►Sonoma County ►San Francisco ► Toledo ► Washington, D.C. ► St. Louis ► Milwaukee ► Others
- 3. PACE IN MINNESOTA ■ In 2010, the State Legislature authorized MN Statutes Sections 216C.435 and 436, and Chapter 429 to enable PACE statewide in Minnesota ■ Any city, county, or Economic Development Commission having authority can establish and implement a PACE Financing Program ■ Currently Available Programs Include ► Emerald Energy Program–Edina ► S.W. Regional Development Commission–Slayton, MN ► PACE of Minnesota–Saint Paul Port Authority
- 4. HOW DOES PACE WORK Local Government establishes PACE Program Building Owner completes energy audit or feasibility study to identify savings opportunities PACE Administrator approves financing & City assigns assessment to property Property Owner completes property improvements Property Owner uses energy savings to repay assessment (for up to 20 years)
- 5. PACE OF MINNESOTA ■ State Wide ► Joint Powers Agreement with Port Authority - Eagan, Cottage Grove, Eden Prairie, Minneapolis ■ $10,000,000 Available – We Will Issue More, If Needed ■ Requires Lender Consent ■ Niches: ► Renewable Energy ► Multi-Tenant Buildings ► Not-for-Profits ■ Interest Rates from 4% to 7%, Depending on Term
- 6. PACE OF MINNESOTA – FINANCING EXAMPLE ■ 80 kW PV Solar Electric System ■ Installed Cost Solar Survey Xcel Application Fee Gross Cost Xcel Rebates Salvage Allowance PACE Loan $506,730 375 250 $507,355 304,080 18,000 $185,275 ■ Semi-Annual Tax Payment $ 11,885 ■ Annual Value of Electricity (110,000 kWh @ $.085) $ ■ Investment Tax Credit $152,019 9,350
- 7. PACE - OPEN ISSUES ■ Lender Consent ► Even California Programs Require It ■ Off-Balance Sheet Financing ► CPA and Building Owner Determine Treatment ► CPAs are Becoming More Stringent ■ Assessment Stays With Property ► Future Mortgagee Will Determine