New Jersey Approves C-PACE Financing For Commercial Projects

Earlier this week (i.e., the week of October 7, 2024), the New Jersey Economic Development Authority (NJEDA) Board approved the creation of the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program. The program will allow commercial property owners to access a new form of financing to undertake energy efficiency, water conservation, renewable energy, and resiliency upgrades.

Per the NJEDA, the "Garden State C-PACE program will serve as a catalyst for private investment into building decarbonization, renewable energy, and resiliency projects, helping to reduce energy costs and stimulate the economy."

C-PACE enables an owner to invest in its buildings on a non-recourse basis, for 30 year funds tie to the ten year Treasury (not SOFR), with no mortgage or other security.