C-PACE Financing

C-PACE – Commercial Property Assessed Clean Energy – is an innovative clean energy financing tool that provides 100% upfront capital to property owners who want to upgrade their buildings with energy efficiency, renewable energy, and water management systems.

  • 100% upfront financing for eligible projects and properties
  • Wide range of eligible improvements
  • Fixed-rate, fully amortizing loans for up to 30+ years
  • No personal or corporate guarantees
  • C-PACE financing available within two years after completion
  • C-PACE loan secured by a voluntary special assessment lien
  • Nonaccelerating: stays with property upon sale or refinance
  • Capital Providers structure financing directly with borrowers
  • Prepayable per financing agreement with Capital Provider
  • Enforced by locality or Capital Provider
  • Consent of all secured mortgage holders required
  • 100% project financing of retrofit and up to 30+% of new construction
  • Long financing terms = lower annual payments
  • Flexible prepayment for project construction and stabilization
  • Non-recourse vs. typical bank loan recourse
  • Potential accounting benefits
  • Better performing building = lower operating and capital costs
  • C-PACE payments transfer to new owner
  • Helps meet ESG/sustainability goals
  • Fund up to 30% of hard and soft construction costs
  • Gap financing that replaces equity or more expensive “mezz” debt
  • Lowers overall cost of capital on development projects, improves ROI
  • Defer payments for multiple years
  • Interest only financing available
  • Funding soft costs in loan can improve construction cash flow

Learn more, at the Virginia C-PACE Authority website