Question 1

What is an EPA Green loan or green building financing?

Accepted Answer

EPA Green loans and green building financing programs provide funding for energy-efficient upgrades, renewable energy installations, and sustainable building improvements. These include PACE (Property Assessed Clean Energy) financing, green building loans, and energy efficiency loans. The goal is to reduce energy consumption, lower operating costs, and improve property value through sustainable improvements.

Question 2

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

Accepted Answer

C-PACE is a financing mechanism that provides long-term, fixed-rate funding for energy efficiency, renewable energy, and water conservation improvements to commercial properties. The loan is repaid through a special assessment on the property tax bill. C-PACE can fund up to 100% of project costs with terms up to 20 to 30 years. See our C-PACE page for more details.

Question 3

What types of improvements qualify for green building financing?

Accepted Answer

Qualifying improvements typically include solar panel installation, HVAC system upgrades, LED lighting, insulation, energy-efficient windows and doors, water conservation systems, cool roofs, electric vehicle charging stations, and building automation systems. The specific qualifying improvements depend on the program and the property type.

Question 4

How much can I borrow for green building improvements?

Accepted Answer

Green building financing amounts depend on the program. C-PACE can fund up to 100% of project costs with no maximum in some states (subject to property value limits). Green building loans from traditional lenders typically offer $25,000 to $5,000,000+ depending on the project scope and the property's value.

Question 5

What are the interest rates for green building loans?

Accepted Answer

Green building loan rates vary by program. C-PACE rates are typically fixed at 6 to 9% with terms of 20 to 30 years. Traditional green building improvement loans may range from 7 to 12% depending on the lender, the borrower's credit, and the project. Some utility companies and state programs offer subsidized rates for energy efficiency improvements.

Question 6

Can green building improvements increase my property value?

Accepted Answer

Yes. Energy-efficient improvements can increase property value by reducing operating costs, improving net operating income (NOI), and making the property more attractive to tenants and buyers. Studies show that green-certified buildings command higher rents and sale prices. The increased NOI from energy savings can also improve the property's DSCR, enabling better refinancing terms.

EPA & Green Energy Loan Programs

Program Parameters

Green Programs We Work With

EPA Brownfields RLF

USDA REAP (Rural Energy)

State Green Banks

DOE Title 17

C-PACE

Frequently Asked Questions

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