The Grand Traverse County Board of Commissioners has unanimously approved a PACE resolution designed to help business owners' bottom lines via energy efficiency improvements. PACE, which stands for property assessed clean energy, is an approach to financing commercial clean energy projects by creating a special assessment allowing businesses to pay off loans via their local property taxes. No taxpayer dollars are involved in the program.
Lean & Green Michigan—a public-private partnership that brings private capital to help companies solve energy problems—will provide PACE support and bring private financing at no cost to the county.
By state law, PACE loans must provide an immediate positive cash flow for businesses. The savings from the energy improvements must be equal to or greater than the cost of the loan. Businesses can then invest in their growth using those savings. In addition, private investors are more willing to provide larger, longer-term loans since they will be backed by the county’s tax collection enforcement.
Grand Traverse is one of only seven counties and two cities in Michigan to adopt the local ordinance.