C-PACE (Commercial Property Assessed Clean Energy) is a financing mechanism that supports energy efficiency, renewable energy, and water conservation projects in commercial buildings by providing low-cost, long-term financing. Here are some of the most cost-effective energy efficiency measures that can be funded by C-PACE:
Cost-Effective Energy Efficiency Measures
- HVAC Systems Upgrades: Replacing old heating, ventilation, and air conditioning systems with energy-efficient models can significantly reduce energy consumption and lower operating costs.
- Insulation and Building Envelope Improvements: Enhancing the building envelope through better insulation, windows, and doors reduces heat loss and gain, improving overall building efficiency.
- LED Lighting: Upgrading to LED lighting reduces energy usage and can increase productivity while lowering operating costs.
- Heat Pumps: These provide both heating and cooling with higher efficiency compared to traditional HVAC systems.
- Facility Controls: Installing modern building management systems can optimize energy usage by automating and controlling lighting, HVAC, and other systems.
Benefits of C-PACE Financing
- Long-term, Fixed-rate Loans: C-PACE offers financing terms that typically range from 20 to 30 years, aligning with the lifespan of the improvements.
- No Upfront Costs: Projects can be financed with no money down, making them more accessible to property owners.
- Low Interest Rates: Interest rates can start as low as 7%, making it an attractive option compared to traditional financing methods.
- Assessment Transfer: The repayment obligation transfers with the property sale and can be passed through to tenants under certain leases.
These features make C-PACE an effective tool for facilities managers to implement sustainable improvements while reducing operational costs and increasing property value.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-most-cost-effective-energy-efficiency-measures-funded-by-c-pace/
