Eligibility Requirements for C-PACE Financing
1. Location
- State and Local Approval: The project must be located in a county or municipality that has approved C-PACE programs within a state with PACE-enabling legislation.
2. Property Type
- Commercial Use: Eligible properties include commercial, industrial, agricultural, and non-profit properties. Mixed-use properties can use C-PACE for the commercial portion.
- Exclusions: Residential and multifamily properties are generally not eligible, though mixed-use properties can apply the program to the non-residential part.
3. Project Types
- Energy Efficiency and Renewable Energy: Eligible projects focus on energy efficiency improvements, renewable energy systems, water conservation measures, and resiliency improvements in some states.
- Examples of Eligible Measures:
- HVAC upgrades
- Building envelope improvements
- High-efficiency chillers, boilers, furnaces, heat pumps
- Renewable energy installations
- Green roofs
- Water-saving equipment and processes.
4. Cost Coverage
- Total Cost Financing: C-PACE can cover up to 100% of both hard and soft costs associated with eligible measures.
- Retroactive Financing: Projects completed within the previous two years may be eligible for retroactive financing.
5. Financial Requirements
- Special Assessment: The financing is repaid through a voluntary special assessment on the property, which is collected annually.
- Loan Terms: Loan terms must be less than or equal to the weighted average useful life of the measures financed.
6. Consent Requirements
- Mortgage Holder Consent: Consent from all mortgage holders is required for the PACE financing.
7. Technical Requirements
- Energy Audit or Feasibility Study: Projects require an energy audit or feasibility study to ensure that improvements meet specific criteria, such as a Savings-to-Investment Ratio (SIR) of 1.0 or greater.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-specific-eligibility-requirements-for-c-pace-financing/
