thePowerand Potentialof Understanding

CommercialProperty AssessedCleanEnergy (CPACE)

BY EILEEN HUDSON

Commercial property-assessed clean energy is known as C-PACE. According to the U.S. Department of Energy, it is a financing mechanism in which building owners borrow money for energy efficiency, renewable energy, or other improvements and make repayments via an assessment on their property tax bill. According to the U.S. Department of Energy, the financing arrangement continues with the property even if it is sold, encouraging long-term improvements in building performance.

C-PACE borrows money from CPACE suppliers to cover construction expenses and implement energy efficiency or renewable energy enhancements for the new energy system, just like other project financing strategies. At the beginning of building new energy systems, CPACE enables business owners to plan wisely with a flexible budget and ensures there will be enough money to invest in the growth of the company.