Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is repaid via a special assessment on the property over a period of years. With the passage of HB 5640, Michigan has authorized local governments to establish such programs, as described below. (Not all local governments in Michigan will choose to offer PACE financing; contact your local government to find out if it has or intends to establish a PACE financing program.)
The State of Michigan signed PACE legislation into law on December 14th of 2010, authorizing municipalities to establish a loan program to provide financing for clean energy (energy efficiency and renewable energy project) improvements to '''''commercial and industrial property owners via local ordinance'''''. The legislation authorizes municipalities to enter into PACE agreements with commercial and industrial property owners, provide financing, and collect PACE assessments to repay the loans. Municipalities may choose to use federal grants, such as Energy Efficiency and Conservation Block Grants (EECBG), or other "funds available for this purpose" to establish PACE programs.
Michigan's legislation stipulates that PACE assessments for property owners with outstanding mortgages must receive written consent from mortgage holders. In addition, qualifying energy efficiency technologies may include ''electric vehicle charging ''and ''water reduction'' infrastructure costs.
As of October 2011, the city of Ann Arbor has launched a [http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=MI112F&re=1&... PACE program].