P.A.C.E. Financing for Solar 2017-11-15T17:49:20+00:00

What is PACE of MN?

Minnesota’s Property Assessed Clean Energy (PACE) financing program provides property owners affordable, long-term capital to implement building-scale clean energy improvements – from smart, energy efficiency upgrades such as insulation and LED lighting, to roof-top solar power systems and electric vehicle infrastructure improvements.

PACE of MN is a financing tool that allows property owners to access competitive, private financing through a partnership with local governments and the St. Paul Port Authority. PACE allows you to maintain a positive cash flow while investing in energy upgrades—at no cost to taxpayers.

Property and business owners can borrow up to 10% the assessed property value to make energy efficiency improvements or install renewable energy projects. The property owner then repays the loan as a separate item on their property tax bill for a set period (no more than 20 years).

Project owners who use PACE financing for their energy improvements pay back the financing through property taxes, as a voluntary special assessment. Because the low-interest loan is attached to the property tax bill, it is easy for property owners to sell and transfer the property and loan repayment.

PACE of MN provides low-cost, long-term financing without the burden of upfront costs, and payments on the energy efficiency projects are usually lower than the realized savings.

Benefits of PACE of MN Financing:

  • 100% financing requires no up-front cash investment
  • Long-term financing (up to 20 years) results in immediate positive cash flow
  • PACE may be treated as off balance sheet financing
  • Available to all businesses, multifamily and non-profit property owners
  • Assessment costs and savings can be shared with tenants
  • Borrow up to 10% of assessed property value
  • Up to 100% of a project cost can be financed via PACE

Minnesota PACE Requirements:

  • Commercial, industrial, nonprofit and multi-housing property owners
  • Maximum 10% load to assessed value of property
  • Maximum 20-year term
  • Owners must be current on mortgage and taxes
  • PACE projects must be permanently affixed to the property
  • Projects must save money for the property owner

PACE financing is a great tool that helps building owners make smart investments in their properties and cut their utility bills through energy efficiency and solar technologies.

How Can You Participate in PACE of MN?

PACE programs are locally based and tailored to meet local market needs, and are available in any city or county across the state of Minnesota. Because PACE of MN was just officially launched in 2014, only a limited number of programs have been initiated so far throughout Minnesota. Visit www.pacenow.org to find out if PACE is set up where you are.

Any city or county can join PACE of MN through a Joint Powers Agreement with the St. Paul Port Authority. If your location is not yet in a program, it’s an easy, streamlined process to get your City or County on board.

How PACE of MN Works:

  1. Cities and Counties sign a Joint Powers Agreement with the St. Paul Port Authority to participate in PACE of MN.
  2. Project owners and contractors submit required materials for a complete project application to PACE of MN.
  3. PACE of MN reviews and approves the projects.
  4. The local City or County formally approves the assessment, upon notice of approval by PACE of MN.
  5. PACE of MN funds the project, and project owners repay the PACE assessment on their property taxes.