Assembly resolution creates pathway to finance private energy upgrades

Bali Kumar, a Minneapolis-based C-PACER lender and former administrator of the Michigan C-PACE program, lauded the program's benefits.

"It allows property owners to borrow capital to rehabilitate, renovate and improve existing buildings, and build state-of-the-art new buildings that don't have high energy costs and burders," Kumar said.

Kumar said that C-PACER program interest rates are similar to traditional lenders. The program is still active in 30 other states. 

"Ultimately, it is up to the property owner whether they want to go through the C-PACER loan or a traditional bank loan," Kumar said. "A lot of people will choose a C-PACER loan because they have the option of a very long payback."

Kumar added traditional banks may be unwilling to loan 'maximum dollars' needed for a project, leaving developers and property owners to seek the next option, which tends to be C-PACER loans.