C-PACE Helps Business Property Owners Finance Energy Efficiency Upgrades
Since 2012 C-PACE [Commercial & Industrial Property Assessed Clean Energy] is an innovative program that provides business property owners with access to 100% financing for qualifying energy efficiency, clean energy and water conservation improvements at affordable long-term fixed interest rates. It is available to commercial and industrial properties, as well as multifamily properties with five or more units.
Similar to a sewer assessment, capital is secured by a lien on the owner’s property and paid back over the expected life of the measure through an additional charge [“voluntary assessment”] on their property tax bill. The repayment obligation transfers automatically to the next owner if the property is sold.
C-PACE voluntary assessments provide a public service by reducing energy costs and greenhouse gas emissions, stimulating the economy, improving property valuation, and creating jobs. C-PACE projects are considered less risky than typical loans, so low interest capital can be raised from the private sector with no government financing required. Other benefits over conventional financing include 20 year amortization at fixed rates that enable more comprehensive retrofits [including energy audits and engineering] at a lower cash outflow.
Engage your builder and financial advisor in a brainstorming session to consider options for leveraging C-PACE for solar and other renewable energy systems, lighting upgrades, building control systems, energy efficient HVAC systems, upgraded insulation, new windows, and other energy conservation measures (ECMs).
- About C-Pace: http://www.cpace.com/about-c-pace
- Program Guidelines: http://www.cpace.com/assets/pdf/Program_Guidelines.pdf