PACE Financing in Minnesota


If you care about your property and you care about the environment, then you should care about PACE financing.


If you don't care, then head over to Wells Fargo's blog. 


What is PACE Financing?

Property Assesses Clean Energy (PACE) financing allows property owners to afford upgrades that increase energy efficiency, utilize renewable energy, conserve resources, and in most cases, protect against storm damage. It solves the expensive upfront cost barrier by providing funds for eligible improvements and project costs, with a long-term repayment plan through property taxes. 

You reduce fossil fuel emission while saving money on costly utility bills and operational expenses. For contractors, PACE also makes it easier to close a larger sale.

"PACE financing is transforming communities by enabling property owners to make their homes and businesses more efficient and resilient."


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Benefits of PACE Financing

There are many advantages to financing sustainability projects through PACE.

1. Can use for residential and commercial properties.

Commercial PACE covers multiple property types from small / medium retails and multi-family rental units to large industrial complexes. Their long-term funding allows you to preserve your working capital, maximize cash flow, and improve property NOI. All factors that increase building value and marketability.

Residential PACE improves the quality and functionality of your home through replacements of broken systems, replacements of outdated insulation, and additions of resiliency measures.

2. Payments are payed through property taxes.

Because payments are paid through property taxes, the loan is less risky, meaning you could have lower interest rates. Additionally, the debt is tied to the property as opposed to the property owner(s), making it even more secure for borrower and borrowee.

3. Saves money on utilities.

Your energy bill, on both residential and commercial properties, tends to be one of the highest expenses getting taken out of your bank account every month. Investing in renewable energy and more efficient systems saves money in the long run on costly utility bills.

*Added benefit that also saves money: possible tax deductions you will become eligible for because you went green.

4. Energy improving investments promote local jobs and improve the environment.

What better way to give back to your community and your planet than by making the switch to sustainable. A lower carbon footprint belongs to a sexy foot.


Eligible Improvements

Over a hundred home and commercial real estate improvement projects can qualify for PACE financing. Here are the main categories they fall under:

Energy Efficiency
Renewable Energy
  • Lighting Upgrades
  • HVAC Systems
  • Building Envelope and Insulation
  • Windows and Doors
  • Automatic Building Controls
  • Boilers and Hot Water Heating
  • Roof Replacement
  • Water Conservation
  • Solar PV Panels
  • Solar Heating Systems
  • Microgrids
  • EV Charging Stations






  • Seismic Resiliency*
  • Hurricane Resiliency*
  • Stormwater Management
  • Fire Resiliency*

*dependent upon the area







PACE Financing in Minnesota

Not all states, cities, and towns offer PACE financing.

Luckily for the residents of Minnesota, PACE financing is an option for your efficiency and resiliency projects, with 100% financing for hard and soft costs. Payments are rolled into property taxes through a special assessment and are typically at a fixed interest rate over 20 to 30 years. MinnPACE Financing is a commercial PACE program administrator that provides funding statewide and either provides it directly to the building owner or through a third-party lender - like Flagship Bank.


If you are looking to find out more about PACE financing, how it works, and if you are eligible, contact one of our experienced lenders today.


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