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Commercial Savings​​​​​​​​​​​​​​​​​​

PACE (Property Assessed Clean Energy) allows property own​​ers to save energy using a special property assessment. This financing has several potential benefits to commercial property owners over traditional loan products. Traditional financing programs are typically limited by short repayment periods, high or variable interest rates, stringent credit requirements that do not account for savings from improved energy efficiency, lack of equity and limited availability.​

PACE special assessments offer low fixed rates, eligibility determined by property value and longer repayment terms. If you want to update your building at a low fixed interest rate with a 10-year term, you want to PACE yourself. Contact the PACE Administrator to get started now!

Not sure if you qualify for A2 PACE but interested in financing an energy efficiency project? Fill out this form, and someone will get in touch with you to discuss your options.

PACE Program​

Who can apply?

  • Commercial or industrial property owners of developed property (existing buildings) located within the city limits of Ann Arbor
  • Applicant must be property title holder and property must be free of involuntary liens (federal or state taxes, judgments)
  • Property owner must be current on mortgage (if property is mortgaged) and property taxes
  • Property owner cannot be in bankruptcy and property cannot be an asset in a bankruptcy proceeding

What can PACE be used for?

In order to be eligible for PACE financing, energy projects must fall within the cost range of $10,000 - $350,000, and this cost cannot exceed 20% of the property’s State Equalized Value. The lien to value of the property cannot exceed 99% of 2 times the State Equalized Value.

  • Energy analysis (energy audit)
  • Insulation and weather sealing
  • Lighting and controls
  • Heating, ventilating and air-conditioning (HVAC) upgrades
  • High-efficiency shower and faucet aerator replacements
  • ENERGY STAR Appliances
  • New doors and windows
  • Solar photovoltaic (electric) systems
  • Wind turbines
  • Solar thermal hot water
  • Ground source heat pumps
  • Combined heat and power systems
  • Biomass thermal systems

How do I apply?

You should start by downloading the application packet and contacting the PACE Administrator. You will then be guided through the pre-application phase, which is the first of five steps in the program. Pre-application is designed to assist you in determining whether the property is a good candidate for a PACE assessment and the likely size of the energy project.

Will I need an energy analysis?

After pre-qualifying, you will need a full energy analysis unless:

  • The PACE Administrator determines your property qualifies for a limited energy analysis
  • The property has an energy analysis that:
    • Was performed under the energy efficiency program sponsored by the Ann Arbor Downtown Development Authority
    • Is less than 3 years old and meets AHSRAE level II or III protocols.

If your property requires an energy analysis, you should contact one of the pre-qualified auditors listed on this website or speak to the PACE Administrator. While you may ultimately work with any contractor to complete the project work, the analysis must be performed by one of the program-approved auditors.

How will I know my building is saving money?

Your energy application will contain all the data necessary to estimate your savings, and the proof will be in your gas and electric bills. As a PACE participant, you will be required to submit energy usage data to the PACE Administrator twice per year, which will help program staff calculate the cumulative benefits of the Ann Arbor PACE program.

How do I learn more?

Contact the PACE Administrator or visit the Frequently Asked Questions page.