To obtain C-PACE (Commercial Property Assessed Clean Energy) financing, you need to follow these key steps:
Steps Involved in Obtaining C-PACE Financing
- Program Eligibility Check:
– Ensure that your project is located in a county or municipality that has approved C-PACE programs within a state that has passed PACE legislation.
– Confirm that the property type is eligible (e.g., commercial, industrial, agricultural, multifamily). - Project Preparation:
– Identify eligible energy efficiency improvements or renewable energy projects (e.g., HVAC systems, solar panels, disaster-hardening features).
– Prepare an initial scope of work with potential energy savings estimates. - Choosing a Contractor:
– While not necessary to use a C-PACE-approved contractor, it can be helpful to work with one who is familiar with the program.
– Obtain competitive proposals from contractors to ensure you have the best scope of work and cost estimates. - Application Process:
– Complete the C-PACE financing application, which typically involves submitting project details, including scope of work, energy savings estimates, and required documentation.
– Engage with local C-PACE program administrators or providers like PACE Equity for guidance and support. - Approval and Financing Terms:
– The C-PACE program administrator reviews the application for eligibility and feasibility, including verifying the project’s energy-saving potential and compliance with local regulations.
– After approval, negotiate the financing terms, such as the amount and duration of the assessment, which can last up to 25 years depending on the useful life of the improvements. - Closing and Funding:
– Finalize the financing agreement with the C-PACE provider, ensuring that all necessary legal and financial documents, including the benefit assessment lien, are in place.
– Obtain consent from existing lenders, as C-PACE financing is secured by a lien that is typically senior to other property-secured debt. - Project Completion and Repayment:
– Execute the project with the selected contractor, ensuring all improvements are completed according to the approved scope of work.
– Repayments are made through property tax assessments, which are paid alongside regular property taxes over the agreed term.
By following these steps, property owners can leverage C-PACE financing to fund sustainable upgrades while benefiting from low-cost, long-term financing options.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-steps-are-involved-in-obtaining-c-pace-financing/
