PACE (Property Assessed Clean Energy ) is a financing tool used to assist commercial, industrial, non profits, and agri-business with improvements that substantially increase energy efficiency. PACE allows businesses to make these fixture improvements without the up-front capital outlay. Costs for the improvements are paid back through a special assessment on their taxes. The increase in property taxes is offset by the decrease in energy costs so that the business sees no change in the bottom line.This program is available for businesses in the member counties of the Rural Minnesota Energy Board. The program is administered by the Southwest Regional Development Commission.
For more information on the PACE program click here.
Property Assessed Clean Energy (PACE) financing
New financing tool for energy efficiency & renewable energy improvements
Is your businesses, farm, multi-family housing building, nonprofit, or place of worship interested in energy efficiency or adding renewable energy like solar? A new financing tool called Property Assessed Clean Energy, or PACE, can help you move forward.
How does PACE work? PACE financing is repaid as an assessment on your property tax bill for a set period. In this way, PACE eliminates the burden of upfront costs by providing low-cost, long-term financing. PACE is different than a traditional loan: there is less of a reliance on credit, the assessment stays with the property instead of the owner, and they can generally be repaid over longer terms than a bank might allow.
What can you do with PACE? Examples of potential building improvements that can be financed with PACE are solar arrays, HVAC upgrades, LED lighting, condensing boilers, digital controls, insulation, variable-frequency drive motors, building automation systems, and other water and energy conservation measures.
Who is behind PACE? The Rural Minnesota Energy Board provides the PACE funding and administers all aspects of the program. The county places the assessment on the property, collect payments each year, and pass money back to the Rural Minnesota Energy Board.
How can you take action? To learn more about PACE and take action, visit http://www.cleanenergyresourceteams.org/pace for program details and applications, factsheets, success stories, and frequently asked questions.