Hmong Village Cuts Energy Costs with PACE Financing

Hmong Village Cuts Energy Costs with PACE Financing

Hmong Village, a vibrant indoor marketplace in St. Paul, occupied with over 300 Hmong-owned businesses, has taken a major step toward energy efficiency thanks to a $274,000 PACE loan from MinnPACE, a division of the Saint Paul Port Authority.

Energy Audit Sparks Action

In 2019, Xcel Energy conducted an audit of the 130,000-square-foot facility, identifying upgrades that could reduce energy consumption by 25% and save up to $75,000 annually. General Manager Thomas Herr opted for a practical plan that balanced impact with budget, focusing on:

• LED lighting upgrades to replace outdated fluorescent fixtures
• HVAC roof unit replacements to reduce electricity demand

These improvements are expected to pay for themselves in just 3.6 years, while creating a more comfortable environment for vendors and shoppers alike.

PACE Financing: A Smart Alternative

Herr chose PACE over traditional bank loans for its 20-year repayment term and lower financial burden. While navigating the program was initially complex, he found the long-term savings and community benefits compelling.

“PACE benefits communities by helping businesses get strong by reducing their energy costs,” Herr said. “At the end of the day, it’s a win-win for everybody.”

A Cultural Hub with National Recognition

Hmong Village is more than a marketplace—it’s a cultural destination. It was even featured in an NBC profile of Olympic gold medalist Suni Lee, who frequently shops there.