C-PACE - The Basics
C-PACE, Commercial Property Assessed Clean Energy, solves an age old problem for building owners by providing private capital for energy efficiency and renewable energy projects.
Due to the program's unique design, C-PACE lenders do not seek the protections typically required in the traditional debt market.
This "borrower friendly" structure means C-PACE has become accepted as an attractive, viable source of capital in the market.
C-PACE has provided over $7 billion across over 3,500 projects in the US.
Texas is third in fundings in the US at $600 million of which almost $200 million was funded in 2023.
C-PACE is available in 32 states, plus DC
Why does C-PACE continue to gain traction?
Increased Building Value
Greater efficiency increases the value of the building and provides other benefits: •Reduced operating costs - energy, repairs, and water •Improves tenant retention and the ability to fill vacant space •Enhanced employee productivity due to a more comfortable work environment
Borrower Friendly Capital
The credit protection provided by C-PACE allows lenders to offer excellent terms: •100% financing covers total project installation costs •Long-term financing of up to 30 years •Self-funding: reduction in operating costs typically offset low debt payments •Non-recourse •No total debt acceleration: the C-PACE lender can accelerate only the portion that is billed but unpaid
Operating Flexibility
The owner’s hands are not tied in managing the business: •No prohibitions in selling the building: the C-PACE assessment is attached to the building and is automatically assumed by the buyer •Absence of typical lender requirements such as limits on asset sales, distributions, capital expenditures, additional debt, and others •Preserves existing capital sources
