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 Image courtesy USA.gov
PACE program will help Ottawa County businesses go green
County establishes a Property Assessed Clean Energy Program, providing better access to funding for energy-efficient improvements
WEST OLIVE -- Whether it's food, time, or energy, waste is generally a bad thing. For businesses, it can be costly; according to some estimates, on average about 30% of the energy used in commercial buildings is wasted.
So why aren't more businesses making energy efficient and renewable energy improvements? Because they're typically expensive. High upfront costs coupled with the uncertainty of whether the investment can be recouped in a reasonable timeframe mean most owners won't chance it.
Enter the Property Assessed Clean Energy (PACE) Program, which offers a funding alternative to traditional bank loans so businesses can make these important energy-efficient improvements.
"With ever-rising energy costs, it is just good business to bring PACE to Ottawa County."
County Administrator Al Vanderberg
Seeing the value in this financial tool, the Ottawa County Board of Commissioners on June 8, 2021, passed a resolution to establish a countywide PACE Program so owners of eligible commercial, industrial, or multi-unit (four or more) residential property can become more sustainable. Nonprofits, houses of worship, and agricultural enterprises could also be eligible for PACE.
"With ever-rising energy costs, it is just good business to bring PACE to Ottawa County," said County Administrator Al Vanderberg.
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How it works
The PACE program helps business owners secure a loan for up to 25 years to cover renewable energy or energy-efficient improvements by attaching a voluntary special assessment to the property upon which the improvements were made. Because the loan is secured with the assessment – meaning it runs with the land, not the owner -- there won't be a balloon payment if the property is sold before the loan matures. This special financing arrangement also creates positive cash flow due to energy cost savings generated by the improvements.
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Through the PACE Program, Treetops Resort in Otsego County financed $2.9 million to install LED lighting, building controls, HVAC, and insulation for a total 25-year savings of $3.3 million.
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According to Lean and Green Michigan (LAGM), a nonprofit organization assisting Ottawa County with administering the program, virtually any energy efficiency, water efficiency, or renewable energy project can qualify.
"PACE programs not only enable long-term, secure financing of energy improvements, but other available incentives and rebates, such as those offered by DTE or Consumers Energy, can be layered on the same project," said Todd Williams, President and General Counsel with LAGM. "We are excited to help bring this advantageous program to Ottawa County."
PACE, enabled by Public Act 270 of 2010, is one more economic development tool that Ottawa County can offer to its business owners that can also help them be more environmentally conscious. The PACE program will be administered through the County's Planning and Performance Improvement Department.
For more detailed information on PACE, or to apply, visit www.miottawa.org/PACE or email plan@miottawa.org. For more information on eligibility, visit www.leanandgreenmi.com.
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