Will a planned energy efficiency, water conservation or renewable energy project meet PACE requirements?

1. Property Assessed Clean Energy
(PACE)

2. Thanks to

3. Agenda
• 9:30 – 9:40 Welcome & Introductions C. Monhart
• 9:40 – 10:00 PACE in Michigan A. Levin
• 10:00 -10:20 Securing a PACE Loan K. Peczynski
• 10:20 – 10:40 PACE and Property Development J. Dombrowski
• 10:40 – 11:00 PACE Project Development C. Monhart
• 11:00 – 11:30 Q&A All

4. PACE
• Six million commercial buildings in the US.
• Average age of energy-consuming technologies - 30 years
• $200 billion spent annually on energy
• 30% wasted
Why?

5. PACE
Energy retrofits
 Capital intensive
 Long payback periods…12 years or more
 Poor ROI
Traditional Financing
• Commercial bank loans
 3-5 year terms
 Requires a down payment – usually 20 -25% of loan value
 Fully paid off if property sold
• Equipment leases
 5 – 7 years most common
 High interest rates
Wasted energy continues

6. Today’s Presentations
• PACE: What it is and how it works
• Establishing a PACE district
• Securing a PACE loan & qualification requirements
• Benefits of PACE in financing property development
• Developing a PACE project

7. Developing a PACE Project
Curt Monhart

8. PACE Project Developer
• The Energy Alliance Group (EAG) of Michigan – an
independent company formed in 2011 to provide energy
solutions focusing on PACE-funded projects
• Lean & Green Michigan approved PACE project developer
• “Cradle to grave” customer interface
• Technology “agnostic”…optimal solution
 Technologies
 Finance
 Incentives
 Services

9. Energy Alliance Group
• Pre-qualify projects
 Ownership
 Property value – appraised…2 X SEV
 Existing mortgages or liens
 No tax delinquencies
 Energy spend
• Energy audits
 Preliminary – sufficient potential energy savings
 Comprehensive – establish energy use “baseline”

10. PACE Project Developer
• Financial analysis
 Covers entire outlook period of PACE loan
 Current vs. proposed energy consumption and cost
 Project - qualified utility rebates, incentives and tax credits
• The next slide is a summary of the financial analysis for a
lighting upgrade to a Detroit manufacturing facility, and is
representative of the information provided by EAG’s financial
analysis.
• Note the maintenance savings - which include “end of life”
replacements - is significant, and are part of the total cost of
the project financed by PACE.
• Most traditional financing options would not cover these
costs

11. PACE Lighting Project
20 Years @ 7% Interest
Includes Maintenance and EOL Replacement for 20 Years

12. PACE Project Developer
• Solicit contractor bids and selection
 Lighting
 HVAC
 Geothermal
 Solar
 Building envelope – doors, windows, insulation, caulking
 Water use reduction or efficiency
• Project management
• Ongoing energy consumption tracking…real
time…annually…reported through Energy Star website
• Michigan projects > $250,000 – must guaranty energy savings

13. PACE Project Developer
• Will a planned energy efficiency, water conservation or
renewable energy project meet PACE requirements?
Contact Lean & Green Michigan
or
The Energy Alliance Group

14. Contacts
Energy Alliance Group
www.energyalliancegroup.org
Phone: 1-844-EAG-MICH (1-844-324-6424)
E-mail: Info@EnergyAllianceGroup.org
Curt Monhart
cmonhart@energyalliancegroup.org
414-788-0844