Property Assessed Clean Energy (PACE) is an innovative financing tool that provides up-front, private capital to pay for building upgrades – currently focused on commercial, industrial and non-profit buildings in Minnesota. PACE financing solves the key barrier to financing for most clean energy improvements for business owners – the security or collateral required for investors to bring low-cost funding to the project.
Property Assessed Clean Energy is exactly that – special assessment-backed financing from your local government (usually a city or county) to pay for a variety of energy efficiency improvements that are permanent improvements to your building. Through PACE of MN, Cities or Counties in Minnesota sign a simple Joint Powers Agreement with the St. Paul Port Authority to designate PACE of MN as the PACE finance administrator for that community.
PACE of MN provides the financing, and the building owner voluntarily agrees to repay that loan on their property taxes, for anywhere from 5 to 20 years. PACE funds in Minnesota can come from a variety of sources; Eutectics™ and PACE of MN have secured a $10 million commitment from Bremer Bank to fund eligible projects through PACE financing. This unique partnership helps eliminate the local challenges for cities and counties, and eliminates the need to issue individual bonds or other notes for each individual PACE project.
Eutectics™ has worked hard to turn improved cash flow from clean energy projects into an attractive investment for private capital – especially as public budgets become more and more limited.
For more information on how PACE works, and how it can work for you, please contact Jeremy Kalin.