In Minnesota, PACE programs currently can serve these key private-sector markets:
- Commercial buildings
- Industrial buildings
- Community facilities owned by non-profits or other private entities, including churches, synagogues, mosques and other religious institutions.
Buildings that are ideal candidates for PACE include Class A and B commercial office buildings, where PACE allows building owners to reduce utility costs with no money upfront, and with both common-area energy savings and increased base rents paying exceeding the loan payments.
PACE can also be an ideal funding mechanism for owner-occupied small businesses and light-industrial projects, seeking to address rising utility costs or deferred maintenance projects.
PACE financing is secured by a special assessment on the project owner’s building. As a result, the project applicant must be the building owner, but Eutectics™ has experience working with landlords and tenants to expand PACE financing to situations where the energy improvements are initiated by the tenant.
The residential market for PACE has been challenged by ongoing discussions on federal law, though some PACE platforms have piloted new ways of working around federal restrictions. Commercial PACE programs like PACE of MN and the Edina Emerald Energy Program have allowed Eutectics to refine our our PACE model for maximum opportunity when the residential market becomes ready for action.
Take a look at our case studies to learn more existing PACE projects.