City of Ann Arbor - PACE Financing (Michigan)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Michigan

Name City of Ann Arbor - PACE Financing
Incentive Type PACE Financing
Applicable Sector Commercial, Industrial, Multi-Family Residential
Eligible Technologies Clothes Washers/Dryers, Dishwasher, Refrigerators, Dehumidifiers, Ceiling Fan, Water Heaters, Lighting, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Roofs, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps
Active Incentive Yes

Implementing Sector Local
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs

Terms Project costs: 10,000-350,000, not to exceed 20% of the property's State Equalized Value

Lien to value of the property cannot exceed 99% of twice the State Equalized Value

Date added to DSIRE 2011-10-13
Last DSIRE Review 2014-08-27

References DSIRE[1]


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 City of Ann Arbor offers Property Assessed Clean Energy (PACE) financing for commercial properties located within the city. Projects will undergo a voluntary special assessment and may range in size from $10,000 to $350,000. The project costs cannot exceed 20% of the property's State Equalized Value, and the lien to value of the property cannot exceed 99% of twice the State Equalized Value. Property owners may use the financing for energy efficiency and/or renewable energy projects as defined by the 2010 Michigan legislation (Public Act 270 of 2010) which authorized local governments to create PACE programs. Commercial properties are defined as any property that is not a single family home, duplex, or certain townhouses. Projects must demonstrate that energy savings will be greater than the cost of the project. Interested residents should apply online at the program web site.

Incentive Contact

Contact Name Matt Naud
Department City of Ann Arbor

Place Ann Arbor, Michigan



Authorities (Please contact the if there are any file problems.)

Authority 1: R-11-425.pdf Resolution R-11-425
Date Effective 2011-10-04
Date Enacted 2011-10-03

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"