Commercial Property Assessed Clean Energy, or C-PACE, has been named one of the Top Twenty World Changing Ideas by Scientific American magazine. Here’s how it works:
C-PACE allows county governments to work with private capital entities to finance qualifying commercial energy projects like solar installations and energy efficiency projects. In utilizing C-PACE for a building’s solar installation, it essentially adds a benefit assessment lien with the property to be recovered over the course of 20 years through surcharges on the property’s tax bill. It allows commercial building owners to take control of their energy costs through installing their own energy producing system, increasing that value of their asset.
These improvement projects can be funded with 100% of the upfront costs covered; the financial arrangement remains with the property even if it changes ownership.
The C-PACE program is available to commercial properties in jurisdictions with active programs. Currently, Maryland, DC and parts of Virginia all have active PACE programs.
What types of properties can qualify? Most types of commercial buildings qualify for this program: malls, office buildings, retail, hotels, restaurants, warehouses, farm buildings are some examples.
For more information on C-PACE, check out the C-PACE site for your building’s jurisdiction:
C-PACE allows private financial providers to opportunity to invest money to commercial building owners in order to improve energy efficiency and switch to clean sourcing, recouping the cost in the property tax bill