H&H Energy Services Use PACE Financing to “Go Solar” and Reduce Energy Costs
The H&H Energy Services building located at 818 Post Road in Madison is the latest Wisconsin business to benefit from commercial Property Assessed Clean Energy (PACE) financing available through PACE Wisconsin. H&H Energy Services plan to offset the majority of their warehouse’s electrical use by installing roof upgrades, a 57 kilowatt photovoltaic (PV) system, along with rooftop heating and cooling units to the one-story 25,200 square foot building. Through the combination of energy savings and reduction in operating costs achieved through these improvements H&H Energy Services will offset the cost of the investment.
PACE is a means of financing energy and water efficiency upgrades, as well as renewable energy installations for commercial and industrial properties. PACE financing can fund up to 100% of the cost of eligible building improvements, and allows property owners to exchange equity with non-recourse financing. Financing options of up to 30 years yield positive cash flows, and increase the net operating income for commercial and industrial building owners. Financing costs can be passed on to tenants as part of their property tax, and therefore benefit tenants and property owners alike.
PACE Wisconsin is administered by Energy Finance Solutions (EFS), the financial services division of the Wisconsin Energy Conservation Corporation (WECC). “As an early adopter, H&H Energy Services will be able to use the benefits of commercial PACE financing as a competitive advantage in the market. Having gone through the PACE financing experience first-hand, H&H will be able to help their clients realize the benefits of this innovative project finance tool,” explained Jason Stringer, Senior Manager Clean Energy Finance for WECC EFS, and PACE Wisconsin Administrator.
The lender for the project is Greenworks Lending, a national lender that currently provides financing in 11 Commercial PACE enabled states. PACE Wisconsin currently works with thirteen lenders, of which four are located in Wisconsin. Thirty counties in Wisconsin have approved an ordinance to participate in PACE Wisconsin—meaning property owners in those counties are now eligible to apply for PACE financing. For more information on PACE Wisconsin and how it helps property owners, businesses, local governments, and contractors, visit pacewi.org.