Offering Low-Cost, 100% Financing for Energy Efficiency and Sustainability Projects
C-PACE (Commercial-Property Assessed Clean Energy) is a private capital program that provides low-cost financial funding, covering 100% of efficiency retrofit project costs for new and existing buildings over a 20+ year period. Given the long repayment period, building owners see immediate upside in net cash flow increase to these projects. The C-PACE program requires no guarantees from ownership, no acceleration of payments, and attaches the assessment to the property that can, therefore, transfer with ownership changes. The interest (5-7%) is cheaper than that charged by mezzanine debt (9-15%) commonly used to finance such projects.
Energy Manager Today breaks down the net cash flow with a visual comparison of C-PACE versus 7-Year Debt Financing. In the proposed scenario, C-PACE Financing produces a cumulative net cash flow of +$189,112 in Year 7 compared to -$123,578 in Year 7 for Debt Financing.
Is C-PACE operating in your state? Check this interactive map to confirm.
Map Credit: PACENation, August 2019
Recommended Reading & Resources:
How C-PACE Changes the Game for Energy Efficiency Projects by Energy Manager Today