Solar & Battery Regulation & Incentive Programs

Rural Minnesota Energy Board PACE Program

Program Overview


Category:
Financial Incentive
Program Type:
PACE Financing
Implementing Sector:
Local
State:
Minnesota
Eligible Storage Technologies:
Solar Water Heat, Geothermal Electric, Solar Photovoltaics, Wind (All), Geothermal Heat Pumps, Yes; specific technologies not identified, Geothermal Direct-Use
Website:
http://rmeb.org/pace.htm
Terms:
Maximum PACE Loan will be up to 20% of the assessed property value $100,000.
Minimum PACE Loan will be $5,000
Greater than a 1:1 savings to investment ratio (projected savings based on energy audit should exceed investment costs)
Maximum of 20 years to repay loan. Loan term must not exceed estimated life expectancy of improvement.
Interest rate determined by RMEB Review Committee
Applicable Sectors:
Commercial, Industrial, Agricultural
Last Updated:
10/17/2020

Summary

Note:  In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.

The Rural Minnesota Energy Board (REMB) of Minnesota offers PACE for businesses in the member counties of the Rural Minnesota Energy Board (Blue Earth, Brown, Cottonwood, Faribault, Freeborn, Jackson, Lincoln, Lyon, Martin, Mower, Murray, Nobles, Pipestone, Redwood, Renville, Rock, Sibley, Watonwan). This program is administered by The Southwest Regional Development Commission.

Financing is applicable for Energy efficient and renewable energy retrofits of existing commercial or industrial buildings. These buildings must must be classified as Commercial or Industrial and the applicant(s) must be the legal owner of the property described in the application.
 The property owner must be current on all mortgages and  not involved in a bankruptcy and the property cannot be an asset in a bankruptcy. Further, there must be no federal or state income liens, judgment liens, or similar involuntary liens on the property.

The property must have an Energy Audit performed by approved energy auditor that shows significant cost savings.

Completed projects:
Blue Line Travel Center in Worthington
Parkwood Place in Mountain Lake
Holiday Station in Worthington
Tae Kwon Do School in Tyler

More information:
Visit the RMEB website
Download the brochure
Download the application
View presentation slides