HOLLAND (WHTC-AM/FM) — Whether it’s food, time, or energy, waste is generally a bad thing. For businesses, it can be costly; according to some estimates, on average about 30% of the energy used in commercial buildings is wasted.
So why aren’t more businesses making energy efficient and renewable energy improvements? Because they’re typically expensive. High upfront costs coupled with the uncertainty of whether the investment can be recouped in a reasonable timeframe mean most owners won’t chance it.
Enter the Property Assessed Clean Energy (PACE) Program, which offers a funding alternative to traditional bank loans so businesses can make these important energy-efficient improvements.
Seeing the value in this financial tool, the Ottawa County Board of Commissioners on June 8, 2021, passed a resolution to establish a countywide PACE Program so owners of eligible commercial, industrial, or multi-unit (four or more) residential property can become more sustainable. Nonprofits, houses of worship, and agricultural enterprises could also be eligible for PACE.
The PACE program helps business owners secure a loan for up to 25 years to cover renewable energy or energy-efficient improvements by attaching a voluntary special assessment to the property upon which the improvements were made. Because the loan is secured with the assessment – meaning it runs with the land, not the owner — there won’t be a balloon payment if the property is sold before the loan matures. This special financing arrangement also creates positive cash flow due to energy cost savings generated by the improvements.
According to Lean and Green Michigan (LAGM), a nonprofit organization assisting Ottawa County with administering the program, virtually any energy efficiency, water efficiency, or renewable energy project can qualify.
PACE, enabled by Public Act 270 of 2010, is one more economic development tool that Ottawa County can offer to its business owners that can also help them be more environmentally conscious. The PACE program will be administered through the County’s Planning and Performance Improvement Department.
For more detailed information on PACE, or to apply, visit www.miottawa.org/PACE or email plan@miottawa.org. For more information on eligibility, visit www.leanandgreenmi.com.
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