New Financing Option For Industrial Property Owners
Interested in upgrading your industrial facilities with energy/water efficiency and distributed
generation technologies but lack the needed capital?
PACE (Property Assessed Clean Energy), enables industrial site owners to obtain affordable, long-term loans covering up to 100 percent of the cost for energy efficiency, water conservation, and on site generation technologies.
PACE secures private financing for a term as long as the projected useful life of the improvements, resulting in utility cost savings that exceed the amount of the repayment. You can modernize your facility without fear of over-investment because if you sell the facility, the PACE loan repayment obligation transfers with the property to the new owner.
CAMBRIDGE ENGINEERING, CHESTERFIELD MO
Cambridge Engineering, Inc., a manufacturer of energy efficiency heating and ventilation technology used PACE to upgrade its facility. A $610,500 comprehensive retrofit resulted in a 30% energy savings. Measures included:
- Air conditioning upgrade
- Roof replacement
- Air volume distribution systems
FIVE SPOKE CREAMERY, GOSHEN NY
Five Spoke Creamery, a manufacturer of cave-aged artisan cheeses, used PACE to finance $74,685 over five years for a 53kW solar system that provides 108% of the facility’s utility requirements and resiliency.
CRANKSHAFT SUPPLY, INC., MINNEAPOLIS MN
Crankshaft Supply, a 50 year old facility that remanufacturers, builds and repairs crankshafts and cylinder heads, used $180,000 of PACE financing for a 40kW rooftop solar array that cuts it utility demand by 50%. PACE provided the funding that the company couldn’t provide internally or obtain through a traditional bank loan.
THE FINANCIAL IMPACT OF INDUSTRIAL PACE
This example compares self-funding and conventional funding with PACE financing:
- Industrial Facility
- Project involves a $2.5M 1.3MW CHP system
- Annual net savings of $473,000 (5.3 yrs simple payback)
- The project does not pass the company’s hurdle rate for investment in energy efficiency (i.e. the ROI is probably not high enough)
- Conventional Funding for 5 years at 4.0% (20% down payment)
- PACE funding available for 20 years at 6.0%.
- Energy prices held constant. NPV discount rate at 8%.
Compare financing options with the financial comparison calculator.