HomeMy WebLinkAbout20220511 - Sustainability Advisory Board - CPACEC-PACE
Conserve Energy
Save Money
Empower Communities
Energy Efficiency: the least cost energy is the energy we don’t use.
Energy Efficiency upgrades:
•Save money to building owners
•Create jobs for contractors, suppliers, and engineers
•Spur local economic development—money stays local
•Are a powerful tool in fighting climate change (20% of U.S.
total energy is used in commercial buildings)
A financing tool to help Montanans
make investments in energy
efficiency and water conservation
PROBLEM: Financing gap. The up-front cost of energy
and water saving upgrades can be a barrier for many
projects.
SOLUTION:Commercial Property Assessed Capital
Enhancements (C-PACE )
What is C-PACE?
Commercial Property Assessed
Capital Enhancements
•Energy efficiency and renewable energy financing tool
•100% upfront financing for upgrades to existing buildings
-Energy efficiency upgrades
-Water conservation upgrades
-Renewable energy upgrades
•Paid back as an assessment on annual property tax bill
•Long term (up to 20 years)
Why use C-PACE over other financing?
•Accessible financing = zero
up-front cost
•Spread the payback over the
life of the improvements
•C-PACE is a NOT a loan.
Property lien = transferable
upon sale
•Savings are greater than
investment
This addresses 2nd major
barrier to energy efficiency
investments: building owner
fear that may sell building
before realizing full savings.
Where does the money
for C-PACE come from?
1.Uses private capital from local banks and investors.
2.C-PACE is an “open market”, meaning any number of
banks and investors can participate.
CPACE is used nation-wide
•38 States have enabled C-PACE
–including Wyoming, Oklahoma, and Nevada
•23 States have active C-PACE
–including Texas, Minnesota, and Colorado
•More than 2,500 municipalities programs
•6 Montana Counties since January 2022
–(Park, Cascade, Missoula, Broadwater, Lincoln, and Gallatin)
Who can use C-PACE?
Eligible Upgrades:
•Insulation
•New heating and cooling systems
•Water efficiency measures
•Waste water recovery and reuse systems
•Solar panels and other onsite renewable
energy
•Electric Vehicle Charging Stations
Eligible property types:
•Commercial
•Industrial
•Agricultural
•Non-Profit
•Multifamily housing
How to Start?
•Montana Facility Finance Authority (MFFA)
–https://lastbestpace.com/
Property Owners
Contractors
Lenders
Case Study
Treetops Acquisition Company, MI
Overview: Ski and Golf Resort
•Amount financed: $2,951,819
•Project term: 25 years
•Net 25 year savings: $1,465,487
•Total 25 year savings: $3,342,835
–PACE lender: Inland Green Capital PACE
contractor: Plug Smart, Ebee Management Grou
Energy conservation measures:
•Interior and exterior LED lighting
•Building controls
•HVAC
•Insulation
Impact: This PACE project is expected to save 20,916,375 kWh of electricity
and 749 metric tons of CO2. That is the equivalent of eliminating the energy use
of 86.4 homes over the next 25 years!
Case Study: LaQuinta del Sol, KY
IMPROVEMENT PROJECTS
•highefficiency HVAC system
•highperformance building envelope
•fifty -two (52) 350-W solar panels
•twenty (20) 1-kW windmills.
OVERVIEW
New construction, 94-room hotel,
the first hotel in Louisville to have
solar and wind energy generation,
along with other energy efficiency
elements.
$1.75 million in PACE funding
IMPACT: reduce electricity use by over 420,000 kWh annually, equival to
power 50 homes for one year or take 63 passenger vehicles off the road.
Ag Case Study
MoonRidge Foods, MS
Project Highlights:
•Total PACE financing: $4,000,000
•Interest Rate: 6%
•Term 10.71 years
•Annual assessment: $169,386
•Energy savings: 2.1 million kwh annually
•Onsite renewable capacity: 65.52 kw
–Lender: Twain Financial Partners County commission
List of improvements:
•HVAC upgrades
•High-efficiency boiler
•Solar photovoltaic system
•Energy-efficient hog harvesting system
•Insulated roof upgrade
•LED lighting
•Energy-efficient packaging equipment
Impact: Expected to save 2.1 million kwh/year.
Approximately $4.1 million in energy, water, operation and maintenance
costs are expected to be avoided during the term of the PACE financing
Hog Processing Faclity
Visit
https://lastbestpace.com/
for more information