C-PACE financing is not debt, and it’s a great way to preserve capital

C-PACE can even be used retroactively for three years.


Commercial property assessed clean energy (C-PACE) is a tool that can finance energy efficiency and renewable energy improvements on commercial property. Like other project financing, C-PACE uses borrowed capital to pay for the upfront costs associated with energy efficiency or renewable energy improvements. Unlike other project financing, the borrowed capital is repaid over time via a voluntary tax assessment. The security provided by the tax assessment, a long-used and well understood mechanism, results in several compelling features, including longer term financing and transferability of the repayment obligations to the next property owner. In turn, C-PACE strengthens the business case for investment in longer payback and deeper building retrofits beyond what is possible with traditional financing.

Why C-PACE Matters for State and Local Governments

C-PACE is not a federal program, and public funding is not necessary to run a C-PACE program. C-PACE must be authorized by state legislation, and requires further authorization from local governments. More than 30 states have adopted C-PACE enabling legislation because of the opportunities for investment in local businesses, energy and cost savings, and job creation.

Private firms often participate in C-PACE as lenders, developers, administrators, contractors, and marketers. With limited public funding, state and local governments are increasingly interested in attracting private dollars to take full advantage of the opportunities associated with energy efficiency and renewable energy investment.



  • PACE can cover 100% of a project’s hard and soft costs.
  • Five, 10- and 30-year, fully amortized terms
  • Energy projects are permanently affixed to a property.
  • The PACE is an assessment on the property tax.


Maximum Funding: up to 30% of appraised value; state specific
No Prepayment Penalty
Loan Amounts: $500,000 to $50,000,000





  • Non-recourse (no PG)
  • Up to 100 CLTV depending on jurisdiction
  • 100% hard and soft financeable
  • C-PACE is Transferable
  • Improvements can be passed through to tenants
  • Refinance improvements that are already installed
  • Increase net operating income and property value
  • Lower Cost of Capital than high cost Mezz, Bridge or Pref Equity
  • Defer first payment from 12-29 months
  • Financing based on property, not owner’s books; often no financials required
  • Promotes economic development and urban revitalization
  • Facilitates Sustainable Building Design
  • Recover Cash from Previous Projects Today!




Eligible Improvements


  • Air Conditioning
  • Ceiling Fan
  • HVAC Upgrades
  • Cooling Towers
  • Duct Sealing
  • Furnace
  • Green Roof
  • Attic Insulation
  • Air Sealing
  • Siding
  • Control Systems
  • Skylights
  • Seismic Retrofits
  • Building Openings for natural light
  • Glass Doors
  • Light Tubes
  • Windows
  • Window & Door Blinds
  • Awnings
  • LED Lighting Fixtures
  • Lighting Control Systems
  • High Efficiency Lighting
  • SMART Project Pathway Lighting
  • Lighting Including Occupancy Sensors
  • Plumbing Repair System
  • Faucet Aerators
  • Toilet Fixtures
  • Deionization Equipment
  • Pre-Rinse Spray Valves
  • Hot Water System Controller
  • Storage Water Heater
  • Tankless Water Heater
  • Filtration
  • SMART Recirculation System
  • Solar Water Heater
  • Solar Pool Heater
  • Solar PV System
  • Batteries
  • Solar Storage
  • Microgrids
  • Irrigation System
  • Landscaping
  • Sprinklers
  • Rainwater Catchment
  • Recycled Water Source Projects