C-PACE FINANCING: An Uncommon Solution To Project Financing

Commercial Property Assessed Clean Energy ("C-PACE") is an overlooked and underutilized solution to funding energy efficient capital improvements which commercial developers and building owners should consider when putting together their project's capital stack.¹ Often referred to as "assessment financing," C-PACE allows a property owner to repay all hard and soft costs of energy and water improvements by way of a special, voluntary assessment levied against the qualified property. Commercial projects² which incorporate renewable energy or alternative energy technologies or install energy efficiency measures are all viable candidates for this low risk financing.³ Funding is available for new construction and renovation and can be obtained retroactively if a project has already started or is completed.⁴ While C-PACE program standards differ from state to state, and jurisdiction to jurisdiction, one thing is clear - a project need not rely on costly state-of-the-art