DETROIT — The Luella Hannan Memorial Foundation will use Property Assessed Clean Energy (PACE) financing on a $900,000 project to reduce energy costs for the foundation’s headquarters, a building that dates back to 1971 on Woodward Avenue in midtown Detroit.
The Hannan Foundation used Levin Energy Partners, Twain Financial, and Private Energy Partners to develop the project, which will use companies affiliated with the National Electrical Contractors Association of Southeastern Michigan and the work force of the International Brotherhood of Electrical Workers, Local 58.
With this project, Hannan becomes the first non-profit to use PACE financing with Lean & Green Michigan.
Improvements to the building will include LED lighting, building controls, heating and cooling work, and a power systems upgrade that will save the foundation a net $1.39 million over the 25-year finance period.
For more on the project, visit http://leanandgreenmi.com/uploads/CaseStudies/HannanFoundationCaseStudy.pdf.
PACE financing makes it easy for property owners to invest in energy efficiency by spreading the cost out over many years — 25 years in this case — and guaranteeing that the investment is cash flow positive for the borrower from day one.
Under PACE financing, energy projects can be financed through a special property tax assessment. Since the loan has the security of a tax bill, banks are more willing to extend long-term loans for energy efficiency projects vs. a standard energy efficiency loan of 3 to 5 years. That allows the financing of energy efficiency projects with longer paybacks, meaning the projects are cash-flow positive from day one. The debt passes on to a new owner in the event of the sale of the property, just like a tax assessment.
PACE financing can cover a wide variety of energy efficiency technologies — including, as of a new law passed Dec. 28, biodigesters. Anaerobic digesters convert energy from organic matter left over in farm, food and beverage-related production into methane to produce power in the form of gas and electricity.
Levin Energy Partners also announced a PACE contractor training program will be held Tuesday, March 8 from 8 a.m. to noon at Velocity Center, 6633 18 Mile Road in Sterling Heights. The cost of the training is $150 a person, which includes breakfast, paper and electronic forms of all materials, and training with the Michigan Saves program. To register, visit http://leanandgreenmi.com/seminar_signup.