Commercial Property Assessed Clean Energy (C-PACE) is an innovative financing solution that makes green energy upgrades accessible and affordable for building owners. It is assessment-based financing that is enabled by Virginia legislation. Where local governments have established PACE programs, property owners may receive PACE loans from private lenders. The City of Fredericksburg has adopted an ordinance to allow C-PACE financing.
C-PACE loans offer 100% financing for a wide range of energy improvements with no upfront costs so building owners can modernize their buildings, lower energy costs and increase their bottom line. It is market-based and commercial property owners secure upfront financing from private capital providers.
Commercial property owners make repayments through an assessment that is placed on their property tax bill. PACE loans may be passed from owner to owner and do not need to be fully repaid if the property is sold.
C-PACE benefits a commercial property owner by providing another option to finance property improvements. Rather than using equity and/or debt for project financing, a property owner may use a PACE provider for 100% financing of qualifying projects with no upfront costs, lower interest rates and longer term financing—up to 20 year terms. PACE financing may also be used as part of overall project financing and it is often treated as an equity contribution.
The public benefits of the program include the environmental benefits of energy-efficient, water-usage-efficient buildings, the incentive to renovate, retrofit or rehabilitate historic buildings, enhancement of the real property tax base and the promotion of employment and economic growth in the city.
Who is Eligible?
Nearly any type of commercial property is eligible, including privately owned, non-residential buildings such as industrial, office, retail, agricultural, non-profit and multi-family. A wide range of energy improvements are eligible and may include upgrades such as lighting, heating and cooling, insulations, motors, pumps, solar panels.
Property owners interested in more information may contact Virginia Department of Mines, Minerals and Energy for details of Mid-Atlantic PACE Alliance, a resource for C-PACE in Virginia.
Bill Freehling, Director of Economic Development and Tourism, via e-mail or at 540.372.1216.