Yes, C-PACE financing can be used for both new construction and renovations. It provides low-cost, long-term financing for energy efficiency, water conservation, and renewable energy projects in commercial properties. Here are some key aspects of how C-PACE financing applies to both scenarios:
C-PACE for New Construction
- Eligible Projects: C-PACE financing can support green new construction by providing capital for projects that incorporate energy-efficient or renewable energy technologies from the outset. This includes solar panels, efficient HVAC systems, insulation, and other green building features.
- Benefits: It allows developers to build more efficient buildings without a large upfront capital outlay, providing better-than-market financing terms. This reduces annual energy and water costs, increasing the property’s value.
C-PACE for Renovations
- Eligible Improvements: C-PACE can finance a wide range of retrofit projects aimed at improving energy efficiency and water conservation. Examples include upgrading HVAC systems, installing LED lighting, enhancing building envelopes, and implementing seismic strengthening measures.
- Benefits: Property owners can modernize their buildings without initial costs, leveraging C-PACE’s long-term, low-interest financing to reduce operational expenses and enhance asset value.
In both scenarios, C-PACE financing is repaid through a special assessment on the property tax bill, which can be passed on to tenants if applicable. This arrangement ensures that the financing costs align with the useful life of the improvements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-c-pace-financing-be-used-for-both-new-construction-and-renovations/
