Is C-PACE worth the effort?
The big advantage of Colorado’s Commercial Property Assessed Clean Energy (C-PACE) finance program is that it can fund capital expenditure through the lens of energy efficiency over 20 years.
Typically, the term is matched to the life of capital expenditure included in an energy efficiency building retrofit, such as a new HVAC system or updated lighting. In addition to the retrofit, all fees, extended warranties, consultancy, project management, commissioning, and monitoring can be included in the C-PACE loan. While the financing fees and costs associated with developing the project can sometimes exceed the cost of traditional commercial finance, a C-PACE loan offers many distinct advantages, such as:
Using cash generated from the building’s energy savings to pay for the retrofit
Enabling 100% of project costs to be financed through the C-PACE program
Requiring no down payment, owner’s equity, or personal guarantee
Delivering immediate cash flow improvement
Increasing property value
Enabling transfer of the loan upon sale of the property, as the C-PACE assessment is tied to the building — not you or your business
Providing a non-accelerating loan structure
Covering all types of energy efficiency, renewable energy, and water conservation improvements
Extending the loan term up to 20 years
Financing up to 30% for non-energy conservation measures, such as a new roof or asbestos mitigation
To understand the advantages of using C-PACE contact Building Energy Performance today. We are C-PACE project developers specializing in helping building owners finance capital expenditure through energy savings.