C-PACE (Commercial Property Assessed Clean Energy) financing can be used for a wide range of energy-efficient improvements, but there are certain limitations and eligibility criteria. Here are some details on what types of improvements are typically covered:
Eligible Improvements
C-PACE financing is generally available for improvements that save or produce energy or water. Examples include:
- Energy Efficiency Upgrades:
- Automated building controls
- Boilers, chillers, and furnaces
- Building envelope improvements (insulation, glazing, windows)
- Combined heat and power systems
- Fuel cells
- High-efficiency lighting
- HVAC upgrades
- Roof replacements that improve energy efficiency (e.g., cool roofs or combined with solar installations)
- Variable speed drives on motors, pumps, and fans
- Waste heat recovery technologies.
- Renewable Energy Projects:
- Geothermal systems
- Hydroelectric systems
- Small wind systems
- Solar photovoltaic (PV) and solar thermal systems.
- Water Conservation Projects:
- Irrigation systems that improve water efficiency
- Water-efficient fixtures (e.g., low-flow faucets, toilets).
Eligibility Criteria
- Permanence Affixation: The equipment must be permanently affixed to the property.
- Useful Life: Improvements must have a useful life of at least 10 years.
- State and Local Variations: Eligible measures can vary by state and local program.
- Assessment and Repayment: Financing is repaid as a benefit assessment on the property tax bill, typically over 20 to 30 years, and can be transferred with the property.
While C-PACE financing is versatile, it is not applicable to every type of energy-efficient improvement. The specific eligibility depends on local regulations and the nature of the project. If an improvement is not explicitly listed, property owners should consult their local C-PACE program administrators for consideration.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-c-pace-financing-be-used-for-all-types-of-energy-efficient-improvements/
