Typical interest rates for C-PACE (Commercial Property Assessed Clean Energy) financing can vary based on the term of the loan. Generally, interest rates range as follows:
- 10-year term: Typically between 5% and 5.5%.
- 15-year term: Usually between 5.5% and 6%.
- 20-year term: Generally between 6% and 6.25%.
However, some C-PACE loans, especially those with longer terms like 25 years, can have rates priced about 300 to 400 basis points over the yield on 10-year Treasury bonds, which might be around 7% depending on market conditions. PACE financing often benefits from lower interest rates due to the secure nature of property tax assessments.
Interest rates can also depend on the specific program and market conditions, such as the yield on U.S. Treasury bonds.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-typical-interest-rates-for-c-pace-financing/
