February 26, 2025

C-PACE Financing in North Carolina: Solution for Owners, Developers, and Banks

North Carolina’s C-PACE Program Rollout

With North Carolina’s recent authorization of C-PACE, the state is laying the groundwork for a program that will encourage economic growth while advancing its commitment to sustainability. The North Carolina Department of Commerce, alongside local municipalities, is working on implementing a framework that will allow commercial property owners across Charlotte, Raleigh, Greensboro, and beyond to take advantage of this financing option.

What is C-PACE Financing?

C-PACE financing provides long-term, low-cost funding for property owners looking to fund construction upgrades, resiliency components and other building improvements. Instead of traditional loans, C-PACE funding is repaid through a special property tax assessment, offering a unique alternative to conventional lending. This structure allows property owners to access 100% financing for eligible projects.

Benefits of C-PACE in North Carolina

As North Carolina’s cities continue to expand, C-PACE financing can play a key role in supporting commercial real estate projects. The benefits include:

  • Increased property value through sustainable upgrades

  • Improved cash flow with long-term, fixed-rate financing

  • Enhanced energy efficiency and resiliency to meet local building standards

  • No personal guarantees, as financing is tied to the property, not the owner

Benefits of C-PACE for Banks in North Carolina

8 Reasons Why Banks are Consenting to PACE

Who Can Benefit from C-PACE in North Carolina?

The C-PACE program is designed to help a range of property owners, including:

  • Commercial real estate developers looking to integrate sustainability into new projects

  • Hotel and hospitality operators upgrading to energy-efficient systems

  • Multifamily housing investors seeking to lower operational costs

  • Industrial facility owners investing in clean energy solutions

The Future of C-PACE in North Carolina

While North Carolina is in the early stages of implementing C-PACE, local governments are beginning to adopt the program, with New Hanover County leading the way as the first to pass a resolution for participation. As more counties and municipalities follow suit, commercial property owners across the state will gain access to this valuable financing tool.