If you have a project that needs a little push to get it going, then one of our financing options listed below might be the way to go.  We are a Michigan Saves authorized contractor as well as a PACE (Property Assessed Clean Energy) approved contractor as well.

Michigan Saves

Close-up Of Businessman Hands Protecting Piggybank With Stack Of Coins At Desk

Michigan Saves is a nonprofit dedicated to making energy improvements easier for all Michigan energy consumers. To accomplish this, Michigan Saves makes affordable financing and other incentives available through grants and partnerships with private sector lenders. They also authorize and monitor a network of contractors and recognize those with advanced training. Their current portfolio includes programs for residential, commercial, and municipal customers, and supports energy efficiency, geothermal, and solar PV projects.

Home Energy Loan Program

The Home Energy Loan Program provides up to $30,000 in financing to homeowners for energy efficiency and renewable energy improvements. They make it easy, with no home appraisal or equity required. Homeowners can choose from a list of qualified improvements such as new windows and doors, new air conditioners or furnaces, or even new appliances. Or get a home energy assessment to identify what you can do to spend less money on energy in your home.

Business Program

With Michigan Saves financing, you can power your business with less energy. Upgrading costly refrigeration units or HVAC systems, replacing old light fixtures, or even adding insulation to your commercial space can help you save. Michigan Saves has negotiated hassle-free, fast financing up to $250,000 as low as 5.9% for up to 5 years.

PACE (Property Assessed Clean Energy)

PACE financing allows longer payback periods with lower annual amortization and better terms, making many energy projects financeable that otherwise would not be. It allows a property owner to use the property tax mechanism to finance energy improvements. The property owner voluntarily takes on a Special Assessment, which it pays off as part of its property tax bill.

That’s a fundamentally different arrangement than a traditional bank loan, in ways that can transform an energy efficiency or renewable project from an engineer’s great idea that the company CFO will not approve into a clear bottom line winner for the company. Here’s how:

  • Since the PACE loan is a special assessment obligation, it is senior to any mortgage – and hence very secure for the lender. (Because of this, if the property owner has a preexisting mortgage, he or she must get the mortgage bank’s consent.)

  • Up to 100% of the project’s cost can be covered under a PACE special assessment.

  • The PACE special assessment “runs with the land” – the owner can sell the property and the new owner simply picks up the payments (and energy savings), just as it begins to pay property tax.

  • Because of these features, PACE special assessments can be amortized for 10 or 20 years or longer (up to the useful life of the improvements or equipment involved) – many times longer than a traditional bank loan. Projects may also garner slightly more favorable interest rates.

  • Under Michigan’s PACE statute, the contractor doing the work must guarantee the energy savings on all projects of $250,000 and up.

  • Bottom line: property owners doing PACE projects approved as part of Lean & Green Michigan™ will generally pay nothing down and will generate more money in energy savings than their payments to service the special assessment. The project will be cash flow positive from beginning to end. In fact, under Michigan’s PACE law, this savings to investment ratio must be positive on day one as a condition of project approval.

  • Many companies also like PACE because their auditors treat it as off-balance sheet for accounting purposes. Most leases treat property tax obligations as operating expenses rather than capital expenses or debts. Special assessments are not accelerated if there is a delinquency or default, and the property may be sold without paying off the assessment. Each company must make its own determination on how to treat PACE for accounting purposes.

All commercial, industrial and multi-family building owners are eligible for PACE financing. Unfortunately residential and public buildings are not eligible at this time, hopefully that will change in the near future.

If you have questions or would like additional info on Michigan Saves or PACE financing, please go to http://michigansaves.org and/or http://www.leanandgreenmi.com/howpaceworks.htm


Feel free to contact Ryan via email at roswald@pureeco.com or phone at (866) 270-2370 to find out more about how Pure Eco can help as well.