C-PACE is great long-term capital, and not just for energy efficiency

So C-PACE has provided over $650 million of private financing for more than 1,500 commercial buildings across 33 states, but is it just about energy efficiency?

C-PACE, which stands for Commercial Property Assessed Clean Energy, is a great source of long-term capital and is designed to help commercial building owners invest in new high efficiency building systems. But, in Colorado, the C-PACE program is also practical and enables funding for a broad array of capital improvements.

For example, a new HVAC at $300,000 adds $25,000 to the property tax assessment, or a 50¢ per square foot pass-through, for a 50,000 sf building. But what about maintenance, fees, and the dreaded owners’ equity requirement? A C-PACE loan can include up to 30% of so called “non-qualifying measures” — meaning that it really can finance 100% of your capital improvement.

In the end, as long as it’s bolted down, contributes to energy efficiency, or falls into the 30% category, C-PACE can finance it. And a C-PACE loan is long-term, fixed-rate, non-recourse, and non-accelerating. Plus, it can be treated as off-balance sheet.

It takes some experience to develop a balanced portfolio of building improvements that meet the C-PACE program criteria and make economic sense. But that’s what we do for a living. We are C-PACE project developers that expertly guide building owners to finance capital expenditure through energy savings. To learn more, contact us for an overview.

InsightJohn Bernhardt