Incentives
C-PACE (Commercial Property Assessed Clean Energy)
Definition
A financing mechanism that allows commercial property owners to fund energy efficiency, renewable energy, and water conservation improvements through a voluntary assessment attached to the property — repaid over 5–30 years via the property tax bill. Available in 38+ states as of 2024.
Why It Matters for Your Business
C-PACE solves the upfront capital barrier for energy upgrades. It offers long repayment terms (often 20–25 years), competitive rates, and 100% financing of project costs with no out-of-pocket investment. The assessment transfers with the property at sale.
Frequently Asked Questions
Does C-PACE require good credit?
C-PACE underwriting is based on the property's value and equity, not the borrower's credit score. This makes it accessible to owners who may not qualify for traditional bank loans.
What projects qualify for C-PACE?
Varies by state program, but typically includes HVAC upgrades, LED lighting, solar, battery storage, building envelope improvements, EV charging, and water efficiency. Some states also allow seismic and resiliency projects.
Is lender consent required?
Usually yes — if there's an existing mortgage, the lender must consent to the C-PACE assessment because it takes senior lien position. Many major lenders now have established C-PACE consent processes.