This version of PACE is used on real property, commercial and large multi-family, depending on the program. Generally, in order to use C-PACE, at a minimum, there needs to be a physical structure permanently affixed to a piece of property. Although there are additions and exceptions around the country, every program allows C-PACE financing to be used for upgrades to the property that reduce its energy consumption requirements in some way, or that generate energy.
The main characteristic that differentiates C-PACE from other financing methods available to property owners is that this “loan” is placed as a lien on the property tax assessment. Among other advantages, this means that C-PACE financing runs with the land and therefore does not accelerate or become due upon sale. This mechanism also allows for long-term financing, often at fixed rates.
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 commercial and multi-family buildings with energy efficiency, renewable energy, and water management systems.