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Pay for it All

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​​​​There are loan programs, tax credits and incentive opportunities out there for commercial and industrial energy efficiency and renewable energy projects.

Not sure if you qualify for financing but interested in an energy efficiency and/or renewable energy project? Contact the Ann Arbor Energy Office at energy@a2gov.org

​​​PACE​​​​​

The Ann Arbor Property Assessed Clean Energy (PACE) program allows property owners 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 interest rates, eligibility determined by property value, longer repayment terms and is off balance sheet. If you want to update your building at a low fixed interest rate with a 10-year term, you want to PACE yourself. ​Visit the Frequently Asked Questions page for more information.


​Download​ PACE application materials. 

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

Not sure if you qualify for A2 PACE but interested in financing an energy efficiency and/or renewable energy project? Contact the Ann Arbor Energy Office at energy@a2gov.org​.

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 Ann Arbor Energy Office at energy@a2gov.org​. 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 ASH​RAE 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. 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?

Visit the Frequently Asked Questions page.

Small Business Loans​

You may want to consider a small business loan. The State of Michigan’s Small Business P2 Loan Program provides loans of up to $400,000 at an interest rate of 5% or less to existing independently owned businesses with 500 or fewer full time employees.

The U.S. Small Business Administration also provides information on a range of loan and other financing programs available to small businesses.

Michigan Saves is a statewide program dedicated to energy efficiency financing up to $250,000 for up to 5 years.

Tax Credits and Deductions

A federal tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. Information on this deduction is available from ENERGY STAR

You may also want to use the software provided by the Building Technologies Program of the Department of Energy to calculate and measure commercial savings opportunities that meet federal tax incentive requirements.

Utility Incentives

Utilities are offering incentives for specific energy efficiency measures. Check the links below for help in financing your energy efficiency projects.

Prescriptive Measures: Learn more.

Custom Measures: Learn more.

Commercial Kitchens

If you are the property owner of a restaurant, grocery or convenience store you can use a PACE assessment to upgrade your cooking and cooling equipment, and you can also take advantage of an ENERGY STAR commercial package.​​

Loans Quicklinks

Tax Credits, Deductions and Incentives Quicklinks

Learn More

Download the PACE brochure 
Download the PACE Application 
Download the PACE report