C-PACE Financing for New Construction and Retroactive Projects
Yes, C-PACE financing can be used for both new construction and retroactive projects.
New Construction Projects
- C-PACE financing allows property owners to cover up to 100% of the costs associated with energy-efficient upgrades, renewable energy systems, water conservation measures, and other resilience projects during new construction.
- Eligible projects include those that improve energy and water performance, align with specific building standards (like LEED or Energy Star), and integrate advanced technology for green buildings.
Retroactive Projects
- C-PACE financing can be used retroactively for projects completed within a certain timeframe, typically within two years of project completion.
- This allows previously completed energy-efficient or water-saving upgrades to be retrofitted into a C-PACE financing structure, which can help reduce debt service payments or free up cash for businesses.
Benefits of C-PACE Financing
- Long-term Financing: Offers extended repayment terms of up to 30 years, depending on state-specific regulations.
- Low-Cost Capital: Provides access to low-cost capital by assessing the property directly, which can be more attractive than traditional financing options.
- Off-Balance Sheet Options: Can be structured as off-balance sheet, making it beneficial for financial reporting.
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-retroactive-projects/
