Montana Commercial PACE Financing Program

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. In 2021, S.B. 147 authorized the creation of a Commercial PACE (C-PACE) program to be administered by the Montana Facility Finance Authority (MFFA). To be eligible, properties must be located in a Montana city, county, town, or a consolidated city-town that has or will establish a C-PACE District. C-PACE District designation is tracked by the MFFA and may be viewed here.

The C-PACE program, or Last Best PACE Program, qualifies projects eligible for private sector financing through low-cost, long-term loans to pay for water conservation, energy efficiency improvements, and renewable energy retrofits for private sector owners of commercial, industrial, non-profit, agricultural, and multi-family properties with four or more dwelling units. The Last Best PACE Program may cover up to 100% of eligible project costs with a payback period of 20+ years. Loans are secured by a tax assessment on the property that is voluntarily imposed and may be amortized over the projected life of the energy improvement. Projects greater than $100,000 may be eligible, for projects smaller than $100,000 C-PACE may not be the most cost effective option.