Montana Commercial PACE Financing Program

June 18, 2024

Summary

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.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Montana
Incentive Type: PACE Financing
Web Site: https://lastbestpace.com/
Administrator: Montana Facility Finance Authority
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Daylighting
  • Water Heaters
  • Lighting
  • Chillers
  • Furnaces
  • Boilers
  • Heat recovery
  • Energy Mgmt. Systems/Building Controls
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Doors
  • Motor VFDs
  • Custom/Others pending approval
  • Wind (Small)
  • Fuel Cells using Renewable Fuels
  • Commercial Refrigeration Equipment
  • HVAC
  • Level-2 Electric Vehicle Service Equipment
  • Direct Current Fast Charging Equipment

Authorities

Name: MCA 90-4-13
Date Enacted: 05/10/2021
Effective Date: 01/01/2022
Name: Montana C-PACE Program Guidelines

Contact

Name: Carolyn Jones
Organization: Montana Facility Finance Authority
Address: 1712 9th Ave., PO Box 200506
Helena MT 59620
Phone: (406) 444-3367
Email: CJones@mt.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.