Own Your Power Now with C-PACE Financing
Hi, my name is Drew Pipik, and I am a Solar Project Analyst at GAIN Renewables. While I am new to the solar industry, I feel I have developed a significant amount of expertise regarding solar in less than a year. As I work to create to custom proposals for our customers, we have learned of a solar financing option for building owners that has zero out of pocket costs and positive cash flow year one!
Commercial Property Assessed Clean Energy (C-PACE) is a financing structure in which building owners borrow money for energy efficiency, renewable energy or other projects and make repayments via an assessment on their property tax bill. Typically, C-PACE financing for solar includes a 20-to-30-year loan term with a five to six percent interest rate, in which the interest is
tax deductible. Additionally, since the financing arrangement is attached to the property tax bill the loan remains with the property even if the property is sold. Currently, there are many incentives for solar, including a federal investment tax credit. With C-PACE financing the building owner is eligible for all incentives and can pay down the loan balance with little to no pre-payment penalty after receiving the federal tax credit. Oftentimes, the building owner is able to take the eligible solar incentives and invest the incentives back into his/her business or building. While C-PACE is enabled by state law, nearly half the states have C-PACE programs (www.iecapace.org/) with numerous other states having passed legislation. Ultimately, C-PACE provides a sustainable investment option with zero out of pocket costs to building owners enabling their businesses/buildings to achieve corporate environmental goals.