Eligible Properties for C-PACE: Criteria and Examples

Eligible Properties for C-PACE: Criteria and Examples

Commercial Property Assessed Clean Energy (C-PACE) programs provide an innovative financing mechanism for property owners to implement energy efficiency, renewable energy, and water conservation upgrades. Understanding the criteria for eligible properties is crucial for stakeholders looking to leverage C-PACE financing. This article outlines the key criteria for eligibility and provides examples of properties that have successfully utilized C-PACE financing.

Criteria for C-PACE Eligibility

C-PACE programs typically have specific criteria that properties must meet to qualify for financing. While these criteria can vary by state and program, the following are common requirements:

1. Property Type: C-PACE is generally available for commercial, industrial, agricultural, and multi-family properties (with five or more units). Some states also allow non-profit and government properties to participate.

2. Ownership: The property must be owned by a private entity or non-profit organization. Owner-occupied properties are eligible, as well as those with tenants.

3. Property Location: The property must be located within a jurisdiction that has adopted C-PACE enabling legislation. Local governments must opt into the program for properties within their boundaries to qualify.

4. Project Scope: The project must focus on improvements that increase energy efficiency, generate renewable energy, or conserve water. Eligible improvements often include HVAC systems, insulation, solar panels, LED lighting, and water-efficient fixtures.

5. Financial Viability: The property must have sufficient equity to support the additional assessment, and the owner must be current on property taxes and mortgage payments. Some programs also require a demonstration of energy savings or positive cash flow from the project.

6. Lender Consent: Mortgage holders must consent to the C-PACE assessment, as it takes precedence over other claims in the event of foreclosure.

Examples of Eligible Properties

To provide a clearer understanding, here are examples of properties that have successfully utilized C-PACE financing:

1. Office Buildings

Example: The Durst Organization's 825 Third Avenue, New York, NY

• Project Details: This office building underwent extensive energy efficiency upgrades, including HVAC system improvements, LED lighting installation, and building envelope enhancements.

• Outcome: The upgrades resulted in significant energy savings, improved tenant comfort, and increased property value. The project was financed through the Energize NY C-PACE program.

2. Hotels

Example: The Wyndham Garden Hotel, Austin, TX

• Project Details: The hotel installed solar panels, upgraded its HVAC system, and replaced outdated lighting with energy-efficient LED fixtures.

• Outcome: The energy savings from these upgrades reduced operating costs and enhanced the hotel's sustainability profile. The project was financed through the Texas PACE Authority.

3. Multi-Family Residential

Example: The Castle Square Apartments, Boston, MA

• Project Details: This multi-family property implemented comprehensive energy efficiency measures, including new insulation, high-efficiency windows, and a state-of-the-art HVAC system.

• Outcome: The improvements led to lower energy costs for residents and increased the overall value of the property. The project was financed through the Mass Save program.

4. Industrial Facilities

Example: The Taylor Farms Processing Plant, Salinas, CA

• Project Details: The industrial facility installed a large-scale solar energy system and upgraded its refrigeration units to more energy-efficient models.

• Outcome: The energy savings from the solar installation and refrigeration upgrades significantly reduced operational costs. The project was financed through the CaliforniaFIRST program.

5. Agricultural Properties

Example: The North Coast Vineyards, Sonoma County, CA

• Project Details: The vineyard installed solar panels, upgraded irrigation systems, and implemented water conservation measures.

• Outcome: The sustainability upgrades enhanced the vineyard's environmental stewardship and reduced water and energy costs. The project was financed through the Sonoma County Energy Independence Program (SCEIP).

Conclusion

Understanding the eligibility criteria for C-PACE financing is essential for property owners and stakeholders aiming to undertake energy efficiency, renewable energy, and water conservation projects. By meeting the program requirements and leveraging the benefits of C-PACE, properties can achieve significant energy savings, reduce operational costs, and enhance their sustainability profiles.

Footnotes:

1. Energy.gov. (2023). C-PACE Financing. Retrieved from Energy.gov.

2. PACENation. (2023). C-PACE Programs by State. Retrieved from PACENation.

C-PACE financing continues to provide valuable opportunities for a wide range of property types. By understanding the criteria and exploring successful examples, property owners can make informed decisions about pursuing C-PACE financing for their energy and sustainability projects.