Demystifying C-PACE Financing: How It Works and What You Need to Know

May 07, 2024

Welcome to our guide on C-PACE financing, a valuable tool for commercial property owners looking to invest in energy-efficient upgrades. C-PACE, which stands for Commercial Property Assessed Clean Energy, is a financing option that allows property owners to fund improvements that reduce energy consumption and increase sustainability.

How Does C-PACE Financing Work?

C-PACE financing is structured as a long-term loan that is repaid through a special assessment on the property. This assessment is collected as part of the property tax bill, making it a convenient and secure way to finance energy-efficient upgrades.

Key Benefits of C-PACE Financing

1. Long-term Financing: C-PACE loans typically have terms of up to 20 years, allowing property owners to spread out the cost of improvements over time.

2. Energy Savings: By investing in energy-efficient upgrades, property owners can reduce their utility bills and operating costs.

3. Increased Property Value: Energy-efficient buildings are more attractive to tenants and buyers, potentially increasing the value of the property.

energy efficiency

Eligibility and Requirements

To qualify for C-PACE financing, properties must meet certain criteria, such as being located in a participating jurisdiction and having a positive equity position. Property owners will need to work with an approved C-PACE lender to assess eligibility and determine the scope of the project.

Steps to Secure C-PACE Financing

  1. Submit an application to an approved C-PACE lender.
  2. Work with the lender to develop a financing plan and project scope.
  3. Obtain approval from the local C-PACE program administrator.
  4. Complete the energy-efficient upgrades and begin repaying the loan through property tax assessments.
sustainable building

Considerations for Property Owners

Before pursuing C-PACE financing, property owners should carefully consider the financial implications and requirements of the program. It's important to assess the potential energy savings and increased property value against the costs of the improvements and financing.

Consulting with Experts

Property owners may benefit from consulting with energy efficiency experts and financial advisors to determine the best course of action for their specific property and financial situation. These professionals can provide valuable insights and guidance throughout the C-PACE financing process.


C-PACE financing offers a unique opportunity for commercial property owners to invest in energy-efficient upgrades that can benefit both their bottom line and the environment. By understanding how C-PACE works and what is required to qualify, property owners can make informed decisions about pursuing this valuable financing option.