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How Do Developers Qualify For C-PACE Financing?
To be eligible for C-PACE financing, a project must be located in a county or municipality that has approved CPACE programs within a state that has passed PACE-enabling legislation.
Note that residential PACE (RPACE) is also available in some jurisdictions, but only C-PACE is covered here.
The parties involved in a C-PACE deal usually include:
✅ A PACE administrator that manages the project and ensures adherence to program requirements
✅ A local government that collects the property tax assessment and remits payment to the capital provider(s) if necessary
✅ A contractor or energy services company (ESCO) that installs the equipment
✅ The building owner (customer) receiving the upgrade or tenants working in concert with their landlord
✅ Private investors, bondholders, or a government to provide the capital.
Commercial PACE (aka C-PACE) is a fast-growing financing structure that has attracted much industry and legislative attention due to its potential to overcome common financing barriers. CPACE financing can work for buildings in any sector, including non-profits that would not normally pay property taxes. However, it is extremely uncommon for tax-exempt government buildings.
Why C-PACE? Who's it for?
✔ Owns or occupies facilities located in jurisdictions with C-PACE programs
✔ Wants long-term financing (10+ years) with lower monthly payments
✔ Prefers to do pilot projects at a few locations before implementing more broadly
✔ Does not plan to own or occupy its facilities long-term and wants to transfer financing obligations at the time of sale
✔ Wants to invest in long-term improvements to building resiliency and reliability