Question 1

What is C-PACE (Commercial Property Assessed Clean Energy) financing?

Accepted Answer

C-PACE is a long-term, fixed-rate financing mechanism for energy efficiency, renewable energy, and water conservation improvements to commercial properties. The loan is repaid through a voluntary special assessment on the property tax bill over 20 to 30 years. C-PACE can fund up to 100% of project costs and is available in 38+ states and Washington, D.C.

Question 2

What improvements qualify for C-PACE financing?

Accepted Answer

Qualifying C-PACE improvements include HVAC system upgrades, solar panel installation, LED lighting, insulation, energy-efficient windows, cool or green roofs, water conservation systems, electric vehicle charging stations, building automation and energy management systems, and seismic upgrades (in some states). The improvements must meet energy savings or environmental benefit requirements.

Question 3

How much can I borrow with C-PACE?

Accepted Answer

C-PACE can fund up to 100% of project costs (hard and soft costs) with no maximum in many states. The loan amount is typically capped at 15 to 25% of the property's assessed value, depending on the state. C-PACE can also be used in new construction, where it can fund the energy-efficient components of the building.

Question 4

What are the interest rates and terms for C-PACE?

Accepted Answer

C-PACE rates are typically fixed at 6 to 9% with terms of 20 to 30 years. The long term and fixed rate make the payments very affordable, and the energy savings often exceed the annual assessment payment, creating positive cash flow from day one. There are no personal guarantees required.

Question 5

Is C-PACE financing non-recourse?

Accepted Answer

Yes. C-PACE financing is non-recourse. The assessment is attached to the property, not the property owner. If the property is sold, the assessment transfers to the new owner. The lender's only recourse is the property tax assessment, not the owner's personal assets.

Question 6

Can C-PACE be used for new construction?

Accepted Answer

Yes. C-PACE can be used for new construction projects to finance the energy-efficient components of the building, such as high-efficiency HVAC, solar panels, insulation, and building envelope improvements. In new construction, C-PACE can fund up to 20 to 30% of the total project cost (depending on the state), reducing the need for traditional mezzanine or equity financing.

C-PACE Financing

Key Program Parameters

What Can Be Financed?

Solar Energy Systems

Energy Storage

HVAC Upgrades

LED Lighting

Water Conservation

Building Envelope

EV Charging

Other Green Improvements

The C-PACE Advantage

Frequently Asked Questions

Ready to Go Green, and Get Funded?