Typical repayment terms for C-PACE (Commercial Property Assessed Clean Energy) financing include:
- Loan Terms: Ranging from 10 to 30 years, depending on the state and the useful life of the equipment installed.
- Repayment Method: Repaid as a special property tax assessment, which allows for transferability upon sale of the property.
- Interest Rates: Fixed rates for the term of the assessment, often quoted over the Treasury index and on a deal-by-deal basis.
- Payment Structure: Self-amortizing payments, meaning each payment covers both interest and principal.
- Prepayment Terms: Typically, there are no lockout, defeasance, or yield maintenance fees for prepayment.
C-PACE financing is designed to offer low-cost, long-term capital for energy efficiency, water conservation, and renewable energy projects, ensuring that annual payments are typically less than the savings generated by the upgrades.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-typical-repayment-terms-for-c-pace-financing/
