Typically, C-PACE financing for renewable energy projects offers long-term, fixed-rate repayment terms that can range from 10 to 30 years. These terms are designed to match the useful life of the installed improvements, such as energy-efficient systems or renewable energy equipment. Repayments are made through a special assessment on the property tax bill, which can be transferred to new owners if the property is sold. This approach ensures that the repayment period aligns with the economic benefits derived from the energy-saving or renewable energy projects.
Key Features of C-PACE Repayment Terms:
- Term Length: Up to 30 years, depending on state regulations and the useful life of the improvements.
- Repayment Method: Special tax assessment on the property tax bill.
- Transferability: Automatically transfers to new property owners upon sale.
- Interest Rate: Typically ranges from 5% to 10% of the funded amount.
Overall, C-PACE financing provides a low-cost, long-term financing solution that supports sustainable and renewable energy projects, making it an attractive option for commercial property owners seeking to upgrade their properties without significant upfront costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-typical-repayment-terms-for-c-pace-financing-on-renewable-energy-projects/
