Department Of Commerce

Commercial Property Assessed Capital Enhancements Financing Eligibility

C-PACE financing can be used to fund permanent energy and water efficiency upgrades as well as renewable energy systems. It is available to eligible property owners of commercial, industrial, nonprofit, mixed-use, agricultural and multifamily properties (five or more dwelling units) in communities that have established C-PACE districts. To view the current districts, visit the C-PACE districts map.

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C-PACE financings are repaid through a dedicated payment that is collected alongside the real estate property tax. The tax assessment lien, once recorded, acts as collateral for the project. For projects with existing lienholder debt, approval from the senior lender is required before the project can move forward.

Existing Buildings Versus New Construction

Last Best PACE supports both the redevelopment of existing buildings and new construction projects.

  • Projects involving the replacement of operational equipment must be cost-effective, with the estimated savings from the project equaling or exceeding the project’s cost over its lifespan
  • Projects that include new construction or the replacement of inoperable equipment must install equipment that exceeds minimum code requirements to be considered efficient 

C-PACE financing can cover up to 100% for retrofit projects and up to 25% of the capital stack for new construction projects. Each project must include an Energy Assessment/Audit (EA) that evaluates the proposed improvements to be financed. The EA must comply with the Program Guidelines and demonstrate the project’s cost effectiveness. Additionally, an Independent Third-Party Review must be conducted to verify the findings of the EA.

Commonly Funded Measures

Commonly funded measures include HVAC systems, lighting, building envelopes, roofing insulation, elevators, water fixtures, water reuse, irrigation, cogeneration and solar energy systems.

Financing Terms and Rebates

The project financing term can extend for the expected lifespan of the proposed improvements as outlined in the EA. For projects with multiple improvements, the weighted average useful life of the improvements will determine the financing term. Financing terms are typically available for 20 years or more.

Projects with C-PACE financing may also be eligible for additional rebates and incentives, including grants, tax credits and utility provider rebates, where applicable.

Limits and Alternative Financing Options

Projects exceeding $100,000 may qualify for C-PACE financing. If your project is under $100,000, C-PACE may not be the most suitable financing option. If C-PACE financing is not a good fit for your project, there are other resources that may be helpful, including: