Yes, C-PACE (Commercial Property Assessed Clean Energy) financing can be used for new construction projects. C-PACE is a type of financing that supports energy-efficient improvements and sustainability measures in commercial properties. It offers a flexible structure that allows it to fund projects at various stages, including new construction, by providing long-term, fixed-rate financing.
Key Benefits for New Construction:
- Reduce weighted average cost of capital: By integrating C-PACE into the capital stack, developers can lower their overall cost of capital compared to more expensive forms of financing.
- Increase total available capital: C-PACE can help increase the available capital for new projects, enabling developers to afford more efficient systems and materials.
- Support green construction: It encourages the incorporation of green technologies and energy-efficient measures, making properties more attractive and sustainable.
How C-PACE Works for New Construction:
- Eligible Measures: C-PACE finances hard and soft costs associated with energy efficiency, water conservation, seismic resiliency, and other sustainability measures.
- Financing Terms: Typically offers terms up to 25-30 years, with fixed rates that are often lower than other financing options.
- Non-Recourse Financing: This means the repayment obligation is tied to the property rather than the individual owner, reducing personal financial risk.
Overall, C-PACE has become a valuable tool for new construction projects by providing a cost-effective way to finance sustainability improvements and reduce upfront costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-c-pace-financing-be-used-for-new-construction-projects/
