@CI Works hosted a visit yesterday from Wendy O’Malley from @MassDevelopment. Wendy provided a great update on the Massachusetts efforts in rolling out PACE within the state. She was brilliant and clear in providing the updated project details, thorough in explaining the complexity of interactions between many involved parties including state agencies, banks, and municipalities, and with a level of energy that was very engaging (unusual for many state employees). Commercial property owners should research this subject further.
MA is rolling out the use of PACE with commercially owned buildings with a broad focus on both energy generation and efficiency type projects in conjunction with individual municipalities. Wendy is on point for the roll out at MassDevelopment and is working across all of the involved parties mentioned above. Wendy is performing all of the heavy lifting to involve a cross section of qualified lenders, a single application process that includes financial requirements, meets the uniformly required technical requirements of multiple state agencies, in cooperation with each municipality, can be performed by qualified contractors / developers, and results in projects that are self funding.
The potential benefits to commercial property owners are immense. Each can include the use of solar photovoltaic generation, solar thermal generation, building energy efficiency projects including heating systems, lighting upgrades, and even roof repairs. The qualifying condition is that each project needs to be a cash flow positive from day 1 and throughout. The project(s) would be treated as a betterment for tax purposes, facilitates financing through educated lenders over a 20 year period matched to the 20 year level of MA upcoming SMART incentive program, includes building energy and cost savings, and be billed and collected through the real estate tax assessments already in place in most municipalities. This addresses a complication repeatedly raised about the sale / transfer of building ownership of a structure that has included these expensive projects. It is now treated as a capital expense. PACE also leaves all of the related federal tax benefits – ITC and MACRS – to owners or investors tax appetites.
Amesbury has jumped onboard the solar energy train. It is in a potential leadership position in the program roll out in Massachusetts. We plan to participate in this roll out at CI Works through both the building(s) we occupy in Amesbury and through the involvement of related companies that are located at CI Works and are part of the solar supply chain. Further, we hope to host community education sessions in coordination with the City and Summit Energy. This could lead to our tenants growing business through City friendly initiatives.
This is what @CI Works is all about. Join us or contact us for more information.