C-PACE, or Commercial Property Assessed Clean Energy, is a financing structure that supports projects aimed at enhancing energy efficiency, renewable energy, water conservation, and resiliency improvements for commercial, industrial, agricultural, and multifamily properties. The typical projects funded by C-PACE include:
- Energy Efficiency Improvements:
- Lighting upgrades (e.g., LED lighting)
- HVAC systems
- Insulation
- Roof replacement (especially when combined with other energy-saving measures like solar panels)
- Building envelope and fenestration improvements
- Renewable Energy Sources:
- Solar panels
- Wind turbines
- Geothermal heating and cooling
- Water Conservation Measures:
- Low-flow plumbing fixtures
- Resiliency Measures:
- Structural retrofits (e.g., seismic retrofits)
- Disaster-hardening features (e.g., wildfire-proofing materials)
- New Construction and Construction Projects:
C-PACE can be used to fund new construction projects and upgrades to existing buildings by covering up to 100% of hard and soft costs associated with eligible measures. - Refinancing Existing Improvements:
Some programs allow C-PACE to refinance previously implemented improvements for more favorable terms.
These projects are typically funded by leveraging a special assessment lien on the property, which allows for repayment through property tax assessments over extended terms, often matching the useful life of the improvements. This financing structure is attractive due to its long-term, low-cost nature and flexibility in supporting a wide range of sustainable enhancements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-types-of-projects-are-typically-funded-by-c-pace/
