Energy Efficiency  -  September 21, 2017

Michigan manufacturer utilizes PACE to save $1.6M

Global manufacturer Heller Machine Tools is expected lower energy bills this year as a result of a recently deployed series of updates, including the replacement of more than 30 rooftop HVAC units at its U.S. headquarters in Troy, Mich. 

Heller became the first manufacturing company in the state to use PACE financing to pay for an energy performance contracting program, which included the replacement of mission-critical facility equipment that was aging past its useful life and invest in energy efficient upgrades to reduce waste. Overall, the project is guaranteed to save more than $1.6 million in energy and operating costs within a 15-year period. 

"The PACE program provided Heller the opportunity to make major improvements in our facility with no initial cash outlay and positive cash flow through energy and maintenance costs savings," Heller Machine Tools President and CEO Keith Vandenkieboom said in a statement. "It also allows Heller to reduce our carbon footprint." 

The company worked with ABM to outline a strategy to replace all of its Troy facility's aging equipment and reduce its overall energy waste, utilizing the city's recently implemented PACE financing program, according to a company statement. The results included the replacement of rooftop HVAC units with new, more energy efficient HVAC units; the installation of a web-based building automation system, interior/exterior LED lighting and controls; and an upgrade of the oldest section of the facility’s ballasted roof with heat-reflective, energy-efficient white thermoplastic polyolefin roofing. 

According to ABM, the PACE financing program spreads costs over 10 to 20 years so that the savings generated are greater than the annual PACE loan repayment, which generates immediate positive cash flow. 

Since Heller's project was announced in February, a number of other Michigan businesses in Detroit and the metro area have moved to utilize PACE financing to enable energy efficiency. 

Keywords: michigan, pace

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