Green Banks are another source of financing for energy efficiency projects. Organizations like Michigan Saves help with 2–5-year financing for energy efficiency upgrades, with the goal of adopting eco-friendly products and services, reducing energy costs and carbon footprints. These specialized equipment loans are government-backed loans, with subsidies from the utilities that reduce the interest rate substantially compared to traditional equipment financing. These resources help businesses improve efficiency, comply with regulations, and lower operational expenses. Incentives often cover HVAC systems, lighting, and renewable energy installations, making upgrades more affordable and accessible.
Property Assessed Clean Energy (PACE) financing enables customers to upgrade energy systems with no upfront costs, with repayment integrated into property taxes. This long-term, fixed-rate financing makes projects more affordable by spreading payments over 20–30 years. PACE funding supports large capital projects that reduce energy costs, enhance property value, and promote sustainability.
Energy rebates from utility providers lower the cost of upgrading to energy-efficient systems and increases the return on investment for the project. In some cases, they can cover a substantial portion of the total cost of the project. Rebates are a one-time payment made by the utilities when a project is completed.
