C-PACE financing typically does not involve upfront costs for property owners. This financing model allows building owners to cover up to 100% of the costs for energy efficiency, renewable energy, and water conservation projects, with repayment structured as a special property tax assessment over a long term, usually up to 25 years. The assessment is added to the property tax bill, similar to a sewer or water district assessment, and can be transferred to new property owners if the property is sold. This setup enables property owners to initiate projects without needing significant initial capital.
However, programs like the Colorado C-PACE include a one-time administration fee, which is part of the total financed amount, meaning it is repaid over the term of the financing. Additionally, counties may levy a small servicing fee for collecting C-PACE assessments. Despite these potential fees, the core idea of C-PACE is to offer financing without the need for substantial upfront payments by the property owner.
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