C-PACE Financing

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C-PACE — Commercial Property Assessed Clean Energy — is a financing mechanism that enables commercial property owners to fund energy efficiency, renewable energy, and resiliency improvements with no upfront capital, repaying the obligation through a special assessment on their property tax bill.

Established through state-level legislation, C-PACE treats clean energy and resiliency upgrades as a public benefit. Projects are financed over 20–30 years, aligned with the useful life of the improvements. The assessment runs with the property, transfers upon sale, and can be passed through to tenants.

Most commercial property types are eligible: office, retail, industrial, hospitality, and multifamily. In addition to advancing sustainability objectives, C-PACE offers superior terms compared to conventional financing — reducing annual operating costs and enhancing asset value.

100% Upfront Financing

Covers all eligible costs for energy efficiency, renewable energy, and resiliency improvements — including engineering, design, and soft costs — with no out-of-pocket capital required.

Off-Balance Sheet Treatment

Structured as a property tax assessment, C-PACE often qualifies for off-balance sheet treatment, preserving borrowing capacity and traditional debt ratios.

Long-Term, Fixed-Rate Terms

Financing extends up to 20–30 years at fixed rates, reducing annual costs and aligning repayment schedules with the useful life of improvements.

Non-Recourse to Borrower

Financing is secured by the property, not the owner. No personal guarantees are typically required, insulating sponsors from individual liability.

Enhances NOI & Property Value

Energy savings and modernized building systems can meaningfully improve net operating income, asset valuation, and tenant retention.

Funds Deferred Maintenance

Address critical capital expenditures — HVAC systems, roofing, windows, lighting — that might otherwise delay or jeopardize development timelines.

New Construction

C-PACE financing for ground-up commercial developments integrating energy-efficient systems, renewable energy, and resilient building design from inception.

Energy Efficient Upgrades

Retrofit existing commercial properties with high-performance HVAC, LED lighting, building envelope improvements, and renewable energy systems.

Recapitalization

Restructure existing capital stacks by applying C-PACE financing retroactively to qualifying improvements completed within the lookback period.