What is C-PACE?

Commercial Property Assessed Clean Energy (C-PACE) is a state-enabled financing tool that allows commercial property owners and developers to access flexible, long-term capital to fund improvements and new construction. C-PACE financing is made possible through state legislation that classifies certain building upgrades as a public benefit, enabling them to be financed via a property tax assessment.

What Can C-PACE Be Used For?

C-PACE can finance a variety of hard and soft costs for new or existing commercial assets.  Hard costs typically include structural systems, building envelopes, HVAC, electrical, plumbing, seismic, and other qualifying enhancements. PACE eligible soft costs include items such as architectural and engineering fees, permitting costs, and other development-related expenses.

How Does C-PACE Work?

C-PACE financing is non-recourse, fixed-rate, and repaid over 20 to 30 years through a special assessment on the property tax bill. C-PACE is typically collected once or twice a year by the municipal taxing authority. While C-PACE can be prepaid at any time, it is designed to run with the land. The C-PACE can transfer to a new owner when the property is sold.

With over $10 billion in total financing and active programs in 40 states, C-PACE is now a mainstream tool for commercial real estate owners seeking to reduce their cost of capital, preserve equity, and enhance asset performance.

To see where C-PACE is currently active, visit the PACE eligibility map.