Saginaw Plaza Partners with Ameresco for ESPC to Enhance Energy Efficiency and Upgrade Facility with Renewable Power
Michigan Agency for Energy, long-term Saginaw Plaza facility tenant, helped achieve greater energy efficiency and renewable energy improvements for tenant and landlord.
FRAMINGHAM, MA and LANSING, MI – August 19, 2015 – Ameresco, Inc., (NYSE:AMRC), a leading energy efficiency and renewable energy company, announced today that Saginaw Plaza, LTD., signed a $437,000 Energy Savings Performance Contract (ESPC) to partner with Ameresco to upgrade their facility in Lansing, MI. The facility is currently leased to the State and houses two governmental agencies: the Michigan Agency for Energy (MAE) and the Michigan Public Service Commission (MPSC). MAE/MPSC worked closely with the property owner, Saginaw Plaza, and Ameresco to achieve facility improvements given the MAE/MPSC is Saginaw Plaza’s long-term tenant.
This public-private partnership for the efficiency improvements utilizes Michigan’s Property Assessed Clean Energy (PACE) statute. PACE is a simple and effective way to finance energy efficiency, renewable energy, and water conservation upgrades. PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any commercial, industrial, non-profit, and agricultural property. Property owners are using PACE because it saves them money and helps make their buildings more valuable. PACE financing pays for 100% of a project’s costs and is repaid for up to 20 years. PACE financing stays with the building with an assessment added to the property’s tax bill upon sale. Local governments sponsor PACE financing to create jobs, promote economic development, and protect the environment.
“The Michigan Agency for Energy is committed to reducing our energy usage and to being more efficient. Our combined efforts with our landlord and Ameresco have allowed us to effectively upgrade our facilities while utilizing taxpayer dollars in the most effective and environmentally responsible way,” said Valerie Brader, Director, MAE. “In addition, we are the first state agency in the United States to utilize PACE financing for energy efficiency measures and renewable energy.”
Jim Ferguson, Manager and General Partner, Saginaw Plaza, Ltd. stated, “After researching this new form of financing for clean energy projects we got very excited about being one of the first to use PACE financing for lease to a State agency.”
The ESPC with Ameresco includes energy efficiency upgrades and infrastructure improvements such as interior and exterior LED lighting, an energy kiosk, and a new pole-mounted 20kw solar array. By utilizing PACE, the owner was able to obtain 20-year, fixed-rate financing for the clean energy measures. Annual energy savings are expected to exceed $25,000. The savings due to reduced energy consumption exceeds the cost of repaying the loan. In addition, Saginaw Plaza is able to take advantage of the tax credits. Additional energy conservation measures were identified during the energy audit and implemented by the developer including additional insulation, two electric vehicle charging stations and weatherization. In the future, the owner also plans to include a new Michigan-made daylight emulation skylight by Arborlight.
“Ameresco commends Saginaw Plaza and MAE for embracing this unique project that is expected to help reduce operating costs, and allows both entities to take a leadership role in economic and environmental stewardship in their community,” said Louis Maltezos, Executive Vice President, Ameresco. “Working together we’ve been able to add value and leverage valuable financial tools. Saginaw Plaza receives the economic benefits of the budget-neutral upgrades with the improvements paid by the savings, while MAE tenants will benefit from the building enhancements and greater comfort.”
The project is expected to be completed August 31, 2015.
About Michigan Agency for Energy
The Michigan Agency for Energy (MAE), coordinates analyzes, advises on and advocates for the state’s policies, programs and proposals related to energy. MAE also provides energy related information and assistance to state departments and agencies. For more information, visit www.michigan.gov/energy.
About Michigan Public Service Commission
The Michigan Public Service Commission (MPSC) administers policies and regulations to ensure that energy and communications services are provided in an efficient, reliable, and safe manner to adequately meet the needs of Michigan residents. For more information, visit www.michigan.gov/mpsc.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for businesses and organizations throughout North America and Europe. Ameresco’s sustainability services include upgrades to a facility’s energy infrastructure and the development, construction and operation of renewable energy plants. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,000 employees providing local expertise in the United States, Canada, and the United Kingdom. For more information, visit www.ameresco.com.
The announcement of a customer’s entry into a project contract is not necessarily indicative of the timing or amount of revenue from such contract, of the company’s overall revenue for any particular period or of trends in the company’s overall total construction backlog.