At least 30% of the utility bill of the average American business is waste. The problem is that the upfront cost of an energy efficiency, water efficiency or renewable energy project to eliminate that waste is difficult to justify when there are dozens of other demands on a company’s capital. Until now.
PACE is a revolutionary new financing tool that enables investment in comprehensive energy efficiency, water efficiency and renewable energy projects that used to be virtually impossible. By financing such projects through PACE, businesses can eliminate the need for upfront capital and spread the costs over 15 or 20 years so that the savings generated from the project are greater than the annual PACE loan repayment – generating immediate positive cash flow.
Lean & Green Michigan PACE financing allows a property owner to use the local government's taxing authority to the property owner's advantage. The property owner voluntarily enters into a special assessment agreement, which it pays off as part of its property tax bill over the next 15 to 20 years.
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:
Learn more with the following resources: