PACE Program Finances Energy Efficiency Measures in Commercial Facilities
Business owners in the City of Kaukauna now have additional financing options to fund energy efficiency improvements and sustainable energy projects through the City’s Property Assessed Clean Energy (PACE) program.
The PACE program allows owners of commercial facilities in Kaukauna to pay for certain energy efficiency improvements as a special charge on their property tax bill over a period of years. Business owners obtain a loan, which is secured by a property lien and repaid as an addition to the property tax bill.
The PACE program allows a property owner to install improvements without a large up-front cash payment. PACE financing spreads the cost of energy improvements over the expected life of the measures and ensures repayment to the City by automatically transferring the debt to the next owner if the property is sold.
“Many property owners delay energy efficiency and renewable energy improvements because the initial purchase costs are perceived as an obstacle. The PACE program can help our citizens overcome the hesitancy to make improvements in their businesses,” said Bob Jackel, Planning Director. “The PACE program provides opportunities to install renewable energy systems and benefits property owners by reducing the upfront installation costs of renewable systems and energy efficient technologies.”
Kaukauna’s PACE program encourages facilities to take advantage of the highest energy efficiency options available. Prior to the expenditure of funds, eligible commercial facilities must complete a detailed energy audit. One such project at an antique mall in downtown Kaukauna included a replacement furnace and central air unit that was 95 percent efficient.
In conjunction with the PACE program, the City of Kaukauna’s Redevelopment Authority is offering a two-percent-interest loan for businesses who participate in the program. Loans can be made for up to 10 percent of a building’s assessed value. The Redevelopment Authority is offering this low-interest loan to further influence participation in the PACE program and encourage older, less efficient facilities to raise and improve their efficiency.
For more information, contact Kaukauna City Planning Department at (920) 766-6315 or Kaukauna Utilities’ Energy Services Representative, Jeff Forbes at (920) 462-0251.