Petros PACE Finance, LLC has closed a $1.3 million Commercial Property Assessed Clean Energy (C-PACE) transaction to finance energy efficiency upgrades for the Battle Creek YMCA, marking the first C-PACE deal in Calhoun County, Mich.
The YMCA’s current facilities were built before 1980 and have gone through renovations over the years. The C-PACE financing will allow the YMCA to make the needed improvements to the inefficient and outdated electrical and mechanical systems.
The YMCA will use the funds for new, more efficient lighting, heating and cooling units for the buildings and pool, along with other energy-saving property enhancements that will reduce electricity use by 47%. In addition to decreasing utility costs, upgraded lighting in the parking lot will improve security for members by illuminating the perimeter of the property.
Over the 22-year life of the loan, energy-efficient features will generate more than $3 million in savings and a CO2 reduction of more than 68 million pounds.
The project comes amid rapid growth of C-PACE as a financing tool for commercial property owners and developers in Michigan looking to boost sustainability and economic development.
C-PACE is a relatively new, low-cost financing product secured as a property tax assessment that solves many problems that have historically prevented commercial building owners from investing in energy efficiency or renewable energy.