25 KW DC
St. Michael, MN
Business + Retail
Client Introduction
Highland Bank is a Minnesota-based commercial bank with a strong commitment to community values and forward-thinking leadership. When the bank began construction on its new St. Michael branch, they saw an opportunity to incorporate solar energy into the project. The goal was to make a smart financial investment while also demonstrating environmental responsibility.
Project Background
When Highland Bank began planning its new St. Michael branch, the leadership team identified solar energy as a valuable way to reduce long-term operating costs and demonstrate a commitment to sustainability. As part of the construction planning process, Cedar Creek Energy partnered with Highland Bank to evaluate how solar could be integrated into the building’s energy strategy from day one.
- As Rick Wall, President of Highland Bank, shared, “There was a time it was a little perilous, trying to determine whether we’d get a grant or not. Things were frozen with the new administration. But we still elected to go forward. The financial benefits were strong enough for us to do it even without the grant.”
The project qualified for a USDA REAP (Rural Energy for America Program) grant due to the site’s rural location.
Although the grant was temporarily frozen due to administrative changes at the federal level, Highland Bank chose to proceed with the project because the return on investment was still compelling, even without the grant. The eventual release of the grant funds made the financials a clear win.
Our Approach
For Highland Bank, we developed a custom system design that matched their building’s footprint and energy goals. We guided their team through the USDA grant application, providing technical documentation and support throughout a complex and time-sensitive process. We also built out easy to follow financial models to demonstrate long-term savings through:
- USDA REAP grant funds
- Federal investment tax credits
- Accelerated depreciation
- Ongoing energy cost reduction
Project Road Blocks
Partway through the project, Xcel Energy stopped granting interconnections on new solar projects in the area. We stayed in close communication with both Highland Bank and Xcel to ensure we could move forward as soon as capacity was restored.
Despite the delay, our commitment to client service and technical readiness helped keep the project moving.
On the financial side, the REAP funds were frozen and it was unclear if the government would honor their already made commitments. (clumsy wording here) After years of closing these grants, we’ve never seen this happen before. In the end, the grant came through!
Cedar Creek Energy aims to take the guesswork out of solar, giving business owners a clear understanding of their energy usage and long-term financial picture. Projects can face unexpected shifts, and having a knowledgeable partner makes all the difference.
Financing with PACE
Property Assessed Clean Energy (PACE) is a financing tool that allows commercial property owners to fund energy efficiency and renewable energy improvements, including solar, through their property tax assessments. This structure allows businesses to access long-term, fixed-rate financing without tapping into their operating capital or traditional credit lines.
At Cedar Creek Energy, we often recommend PACE financing to clients because it removes the need for upfront capital and helps the client bundle energy efficiency projects. Highland Bank has been a trusted partner in delivering PACE financing to several of our commercial clients.
