Key Benefits of C-PACE Financing
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Limited Capital Requirement
- No Down Payment Needed: C-PACE financing allows property owners to finance up to 100% of the improvement costs without requiring any upfront capital.
- Minimal Initial Investment: This feature is particularly beneficial for projects where initial capital is scarce.
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Improved Cash Flow
- Potential for Increased Savings: The annual savings from energy-efficient improvements can exceed the annual debt service, enhancing the property owner’s cash flow.
- Long-Term Benefits: These savings can continue over the life of the project.
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Long-Term and Non-Recourse Financing
- Extended Repayment Terms: C-PACE assessments can have repayment terms of 10 to 30 years, offering flexibility and reduced financial strain.
- Reduced Personal Risk: The non-recourse aspect means that the borrower is not personally liable for the debt, reducing financial risk.
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Lower Cost of Financing
- Priority Lien Status: The C-PACE assessment is secured by the property and typically has a super priority lien, which can lead to lower interest rates compared to unsecured loans.
- Stable Borrowing Conditions: This structure provides lenders with more security, enabling better loan terms.
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Flexibility and Transferability
- Flexible Use Across Project Stages: C-PACE financing can be used pre-, mid-, or post-construction, offering flexibility for various project stages.
- Transferable Assessments: The assessments can be transferred to new property owners, reducing obstacles during property sales.
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Environmental Benefits
- Promotion of Sustainable Practices: C-PACE encourages energy-efficient and renewable energy improvements, contributing to reduced carbon emissions and alignment with environmental goals.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-benefits-of-using-c-pace-financing/
