C-PACE Financing

Petros PACE Finance provides long-term, 100% financing for energy retrofits and upgrades for commercial properties

Commercial Property Assessed Clean Energy (“C-PACE”) is a relatively new and unique financing tool enabling owners of all types of commercial and other non-residential properties to receive long-term, 100% financing for their energy efficiency, water efficiency and renewable energy retrofit or improvement projects. For developers, C-PACE financing has emerged as a low-cost alternative to mezz and equity and is offered on non-recourse, non-accelerating, fixed-rate loan terms that can fund up to 25% of the capital stack for development projects.

C-PACE financing enables businesses to generate immediate positive cash-flow by financing energy retrofits over terms of up to 30 years; the property assessed characteristic of C-PACE makes this possible. By attaching the C-PACE loan repayment to the local government’s property tax special assessment process, C-PACE loans can be extended up to the useful life of the project, thereby making energy savings generated from the project greater than the loan repayment. In many states, this positive cash-flow is required before the project can be approved.

Click below to play the helpful C-PACE video

C-PACE financing is an excellent way to finance your building’s energy upgrades or retrofits or use it as a much less expensive form of financing to mezz or equity on your development projects. It can spread out the costs, free up your yearly budget, realize dramatic energy cost savings, and reduce your credit risk.

  • Works for commercial, industrial, multi-family, hospitality, mixed-use, and other types
  • 100% financing; no upfront, out of pocket costs
  • Non-recourse, non-accelerating, long-term, fixed-rate financing
  • Fixed rates up to 30 years
  • C-PACE payment is an above-the-line, reimbursable operating expense under net leases
  • Displaces more expensive mezzanine and equity requirements in the capital stack
  • Lowers WACC and boosts project-level equity returns
  • Frees your capital budget, allowing investment in higher return opportunities
  • Property owner keeps tax credits/rebates when available
  • Cash flow positive from day one
  • Increases net operating income & property value
  • Attaches to the property, not the borrower, automatically transferring with ownership change
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