Yes, C-PACE financing can be used for both new construction projects and retrofits. It provides a financing mechanism for commercial property owners to fund energy efficiency, water conservation, renewable energy, and resiliency projects. Here are key points about its application in both contexts:
New Construction
- Eligibility: New construction projects can qualify for C-PACE financing if they utilize standards or equipment that improve energy and water performance, such as LEED certifications or Green Building Initiative’s Green Globes.
- Financing: C-PACE can cover up to 100% of costs associated with energy and water conservation measures.
- Benefits: This financing method allows developers to access low-cost, long-term capital for sustainable new builds, reducing operational expenses over time.
Retrofits
- Eligibility: Existing buildings undergoing retrofits are also eligible, as C-PACE can finance energy efficiency upgrades and renewable energy installations such as HVAC upgrades and solar power.
- Financing: Retrofits can be financed up to 100% for both hard and soft costs, offering a mechanism for property owners to enhance their building’s sustainability without initial outlays.
- Retroactive Financing: In some cases, C-PACE can be used retroactively to refinance projects completed within a certain timeframe (often up to three years), allowing property owners to take advantage of prior improvements.
Overall, C-PACE financing offers a versatile tool for enhancing the sustainability of both new and existing commercial properties through favorable financial terms tied to property assessments rather than owner creditworthiness.
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-retrofits/
