The document outlines the Property Assessed Clean Energy (PACE) program's agenda and its significance in Michigan, highlighting various aspects such as securing a PACE loan, project development, and the benefits of energy retrofits. It notes the challenges of traditional financing methods and emphasizes the role of the Energy Alliance Group in promoting PACE projects. A specific financial analysis example for a lighting upgrade project in Detroit illustrates the potential benefits of PACE financing.

1. Property Assessed Clean Energy
(PACE)

2. Thanks to

3. Agenda
• 9:30 – 9:40 Welcome & Introductions C. Monhart
• 9:40 – 10:00 PACE in Michigan A. Levin
• 10:00 -10:20 Securing a PACE Loan K. Peczynski
• 10:20 – 10:40 PACE and Property Development J. Dombrowski
• 10:40 – 11:00 PACE Project Development C. Monhart
• 11:00 – 11:30 Q&A All

4. PACE
• Six million commercial buildings in the US.
• Average age of energy-consuming technologies - 30 years
• $200 billion spent annually on energy
• 30% wasted
Why?

5. PACE
Energy retrofits
 Capital intensive
 Long payback periods…12 years or more
 Poor ROI
Traditional Financing
• Commercial bank loans
 3-5 year terms
 Requires a down payment – usually 20 -25% of loan value
 Fully paid off if property sold
• Equipment leases
 5 – 7 years most common
 High interest rates
Wasted energy continues

6. Today’s Presentations
• PACE: What it is and how it works
• Establishing a PACE district
• Securing a PACE loan & qualification requirements
• Benefits of PACE in financing property development
• Developing a PACE project

7. Developing a PACE Project
Curt Monhart

8. PACE Project Developer
• The Energy Alliance Group (EAG) of Michigan – an
independent company formed in 2011 to provide energy
solutions focusing on PACE-funded projects
• Lean & Green Michigan approved PACE project developer
• “Cradle to grave” customer interface
• Technology “agnostic”…optimal solution
 Technologies
 Finance
 Incentives
 Services

9. Energy Alliance Group
• Pre-qualify projects
 Ownership
 Property value – appraised…2 X SEV
 Existing mortgages or liens
 No tax delinquencies
 Energy spend
• Energy audits
 Preliminary – sufficient potential energy savings
 Comprehensive – establish energy use “baseline”

10. PACE Project Developer
• Financial analysis
 Covers entire outlook period of PACE loan
 Current vs. proposed energy consumption and cost
 Project - qualified utility rebates, incentives and tax credits
• The next slide is a summary of the financial analysis for a
lighting upgrade to a Detroit manufacturing facility, and is
representative of the information provided by EAG’s financial
analysis.
• Note the maintenance savings - which include “end of life”
replacements - is significant, and are part of the total cost of
the project financed by PACE.
• Most traditional financing options would not cover these
costs

11. PACE Lighting Project
20 Years @ 7% Interest
Includes Maintenance and EOL Replacement for 20 Years

12. PACE Project Developer
• Solicit contractor bids and selection
 Lighting
 HVAC
 Geothermal
 Solar
 Building envelope – doors, windows, insulation, caulking
 Water use reduction or efficiency
• Project management
• Ongoing energy consumption tracking…real
time…annually…reported through Energy Star website
• Michigan projects > $250,000 – must guaranty energy savings

13. PACE Project Developer
• Will a planned energy efficiency, water conservation or
renewable energy project meet PACE requirements?
Contact Lean & Green Michigan
or
The Energy Alliance Group

14. Contacts
Energy Alliance Group
www.energyalliancegroup.org
Phone: 1-844-EAG-MICH (1-844-324-6424)
E-mail: Info@EnergyAllianceGroup.org
Curt Monhart
cmonhart@energyalliancegroup.org
414-788-0844