Eligible Properties for C-PACE Financing Across Different States
C-PACE (Commercial Property Assessed Clean Energy) financing is designed to support energy efficiency, renewable energy, and water conservation improvements in various types of commercial properties. Eligibility criteria can vary by state and program, but generally, the following property types are eligible:
Eligible Property Types
- Commercial Properties: This includes office buildings, retail spaces, and other commercial facilities.
- Industrial Properties: Manufacturing plants, warehouses, and other industrial sites are eligible.
- Agricultural Properties: Farms and related agricultural facilities can benefit from C-PACE financing.
- Multi-Family Residential Properties: Buildings with five or more units qualify for C-PACE programs.
- Non-Profit Properties: Depending on the state, non-profit organizations may also be eligible for C-PACE financing.
- Hotel and Hospitality Properties: Hotels and similar hospitality businesses can use C-PACE for energy upgrades.
- Mixed-Use Properties: Properties that combine different uses, such as residential and commercial, can qualify.
General Eligibility Criteria
- Ownership: Properties must be owned by a private entity, partnership, corporation, REIT, or a non-profit organization.
- Location: The property must be located in a jurisdiction with enacted C-PACE enabling legislation.
- Project Scope: Projects must focus on energy efficiency, renewable energy, or water conservation measures.
- Financial Viability: The property must have sufficient equity, and the owner must be current on mortgage payments and property taxes.
- Lender Consent: Mortgage holders must consent to the C-PACE assessment, as it takes precedence over other claims.
Examples of Eligible Projects
- Energy Efficiency Upgrades: Improvements such as HVAC upgrades, insulation, and LED lighting.
- Renewable Energy: Solar panels, wind power, and other renewable energy systems.
- Water Conservation: Water-efficient fixtures and irrigation systems.
C-PACE financing allows for 100% coverage of hard and soft costs associated with these improvements, repaid through property tax assessments over the useful life of the improvements, typically ranging from 10 to 30 years.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-types-of-properties-are-eligible-for-c-pace-financing-in-different-states/
