Commercial Property Assessed Clean Energy Information

C-PACE is an attractive option for building owners seeking to upgrade their buildings with new, energy-efficient equipment. For developers planning new buildings, C-PACE provides a major financial incentive to design buildings "above code," which leads to significant operational cost savings as well as improved thermal comfort and indoor air quality. In a C-PACE transaction, local banks or specialty private capital firms provide long-term, fixed-rate financing that covers 100 percent of the project cost. Eligible properties include commercial, industrial, manufacturing, mining, professional, private/public club, agriculture, lodging, retail, non-profit, and residential housing properties with more than four units. In well-designed projects, the energy cost savings exceed the finance payments. For new buildings that are designed to exceed the current building code, C-PACE generally finances 15-20 percent of the total construction cost. C-PACE financings do not require personal guarantees from the building owner. Repayment of the C-PACE assessment can be managed by the county's property tax billing and collection system, similar to a sewer assessment. Alternatively, in Utah, the building owner can repay the capital provider directly. When a property is sold, the C-PACE assessment can transfer to the new owner.