About C-PACE
Connecticut Property Assessed Clean Energy (C-PACE) is an innovative program that is helping commercial, industrial and multi-family property owners access affordable, long-term financing for smart energy upgrades to their buildings.
C-PACE allows building owners to finance qualifying energy efficiency and clean energy improvements through placing a voluntary assessment on their property tax bill. Property owners pay for the improvements over time through this additional charge on their property tax bill and the repayment obligation transfers automatically to the next owner if the property is sold. Similar to a sewer tax assessment, capital provided under the C-PACE program is secured by a lien on the property, so low-interest capital can be raised from the private sector with no government financing required.
PACE financing offers a broad range of benefits to building owners, municipalities, mortgage holders, lenders and energy efficiency/renewable energy contractors. CLICK the links on the left to learn more about how C-PACE benefits you.
Visit our resources page to read the C-PACE program guidelines and learn how you can participate in C-PACE.
Have a project in mind already? GET STARTED NOW.
I am a building owner
C-PACE provides 100% upfront, fixed rate, long-term financing to property owners for qualified energy upgrades. Game-changing benefits for owners are:
- C-PACE assessments may qualify as an operating expense. This means owners can finance improvements without incurring additional debt and preserve capital and credit lines for core business investments. Also, under typical leases, payments – as well as energy savings – can be passed along to tenants.
- The tax obligation (which is attached to the property) transfers upon sale to the new owner. Unlike other lending options, payments do not accelerate in case of default.
- The C-PACE program requires projects to be cash flow-positive from project completion. Financing is structured so that energy savings must more than offset the additional property tax assessment.
- Deeper energy upgrades are possible because the term of the assessment is up to 20 years and stays with the property rather than the owner.
- Owners achieve lower operating costs due to increased energy efficiency, improved asset value from new equipment, and a better indoor air quality and comfort for tenants.
Learn about qualifying PACE projects HERE.
Search for completed clean energy projects in Connecticut HERE.
Have a project already? APPLY NOW.
I am a clean energy auditor, contractor or project developer
The biggest barrier to converting leads to deals for energy upgrades is the lack of access to upfront financing. PACE solves this. By allowing a property owner to access 100% upfront financing for up to 20 years, deeper energy efficiency and clean energy improvements are now affordable. The demand for building energy improvements will grow in Connecticut and jobs will be created.
As administrator of the C-PACE program, CEFIA will pre-qualify and highlight auditors and contractors on its website and in marketing materials. Interested in becoming a pre-qualified auditor or contractor? Click HERE.
Have a project already? APPLY NOW.
I am a lender
C-PACE has created a very secure, clean energy product for lenders. The security comes from its position as a tax lien on a property. The tax lien, like all public benefit assessments, sits in a senior position. The repayment is also tied to property taxes, which are a very secure stream of payment. Finally, state law requires C-PACE approved projects to be cashflow positive so annual energy savings must more than offset the annual assessment.
Connecticut has made it easy by establishing a single statewide C-PACE program administered by CEFIA. Building owners can arrange financing with the investor of their choice, however CEFIA has pre-qualified several capital providers. See the list here.
Interesting in becoming a pre-qualified for the C-PACE program? CLICK HERE.
Learn more about CEFIA’s technical standards for measuring and verifying energy savings estimates HERE.
I am a municipality
C-PACE is an economic development tool for municipalities. Energy upgrades create a more competitive environment for retaining and attracting new businesses by lowering energy costs. Energy upgrades also create jobs and reduce greenhouse gases and other pollutants.
Legislation passed in June 2012 allows interested municipalities to opt in to this financing program, thereby enabling local business to access financing to upgrade their buildings. Municipalities across the state are beginning to take advantage of this new program. See the municipalities that are already participating.
Learn how your municipality can join the C-PACE program HERE.
I am a mortgage holder
C-PACE has created a secure, clean energy product to ensure that participating buildings benefit from financing for energy upgrades. Connecticut state law requires C-PACE approved projects to have a Savings to Investment Ratio greater than 1, meaning the project remains cash flow positive throughout the term of the assessment. The building sees increased NOI and an immediate return on investment. In the case of a default, only the assessments in arrears are due.
CEFIA has also instituted technical underwriting standards for C-PACE that provide a robust framework for measuring and verifying energy savings estimates. Finally, Connecticut law requires that property owners receive the written consent of their existing mortgage holder before being eligible for C-PACE financing. Mortgage lenders will be at the table helping to determine whether a property can undertake this voluntary assessment.
Learn more about the financial standards of eligible upgrades HERE.
