Benefits of C-PACE for Property Owners
Commercial Property Assessed Clean Energy (C-PACE) offers several benefits to property owners, making it an attractive option for financing energy efficiency, renewable energy, and other environmentally friendly projects.
Key Benefits:
- Low-Cost, Long-Term Financing
- C-PACE provides access to low-cost financing with long repayment terms, typically ranging from 10 to 30 years, matching the useful life of the improvements.
- This long-term structure allows property owners to benefit from reduced annual costs without upfront capital outlay.
- No Down Payment Required
- Property owners can finance up to 100% of eligible project costs with no initial cash investment.
- Improved Cash Flow
- The savings generated from energy-efficient improvements often exceed the annual repayment costs, potentially increasing property owners’ cash flow.
- This ensures that the investments in energy efficiency can pay for themselves.
- Environmental Benefits
- C-PACE supports sustainability initiatives by promoting energy efficiency and renewable energy projects, which contribute to reduced carbon footprint and enhanced corporate image.
- Transferability
- The C-PACE assessment remains tied to the property, not the owner. This feature allows the assessment to transfer to new owners upon sale, avoiding potential penalties or accelerated payment.
- Risk Management
- C-PACE financing is secured by a senior lien on the property, reducing the risk for lenders and often resulting in more favorable interest rates compared to unsecured loans.
- Tenant and Landlord Benefits
- In triple net leases, tenants may cover the C-PACE assessments as part of their property tax obligations. This can benefit both parties if energy savings offset or exceed the assessment costs.
- Market Advantage
- Properties with C-PACE-funded improvements can be marketed as environmentally friendly, potentially increasing property value and attracting tenants who value sustainable facilities.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-benefits-of-c-pace-for-property-owners/
