Property owners and developers have new incentives to update their construction projects with energy upgrades using Commercial Property Assessed Clean Energy (C-PACE). It’s easier—and quicker—than ever to upgrade the energy efficiency of your commercial, industrial, and multifamily buildings using C-PACE clean energy improvement low-cost loans.
But not everyone knows exactly how C-PACE works or the “secrets” of how it can help you achieve success and meet your goals, no matter what the world throws at you. C-PACE financing can help you:
- Boost your business with access to easy (and fast!) cash
- Get prepaid funding with 20-year low fixed-rate financing
- Use retroactive funds for improvements you have already made
- Save cash with tax incentives
- Increase your property value and demand
How C-PACE Works
C-PACE is unique financing for commercial buildings. Owners can use energy upgrade financing to infuse cash into their business. There’s no money down, and you get instant cash, tax incentives, increased property value, and control over energy costs.
C-PACE can be used for:
- Commercial property financing for new construction
- Upgrades to current construction
- Future projects
- Improvements you’ve already made
Given the challenges that the COVID-19 pandemic has brought, the C-PACE program can help your business bounce back, infusing cash right now. Let’s dive into the most impactful C-PACE benefits, and how they can help you and your business right now.
Boost Your Business with Easy Cash Access
COVID-19 has brought unprecedented challenges to businesses—2020 will go down in history as one of our most difficult years. These challenges and difficulties have created a world where it will take at least a year for most businesses to get back on track.
But you don’t have to let that happen.
With C-PACE financing, you can access cash now to cover both your overhead and operating costs, improve your cash flow, pay off debts, and more—you use it for whatever your organization needs. And it’s not some emergency high-interest loan you’ll regret. C-PACE financing is different.
Get Prepaid Funding with 20-Year Low, Fixed-Rate Financing
C-PACE financing allows terms up to 20 years. Yes—20 years! The fixed rates are low and fair, and there’s no catch.
You can generate increased net operating income from projects with simple paybacks. C-PACE is property-based financing and requires no personal or corporate guarantees. Plus, financing repayment automatically transfers to the new building owner upon the sale of the property, so you only use what you need. (We’ll bring this up again, because it’s important to remember!)
Clean energy improvements can have upfront costs that are really hard to afford. C-PACE spreads the cost of clean energy improvements so you can overcome the initial costs of investing in clean energy. Remember, you pay no money down, and up to 100 percent financing is approved for upgrades, including:
- HVAC systems
- Boilers and chillers
- Building automation and control systems
- LED lighting
- Insulation, windows, doors, and roofing
Use Retroactive Funds for Improvements You Have Already Made
Now, this is a big deal—and this is for real: C-PACE can be used retroactively, so you get cash for improvements you’ve already made.
Although this isn’t new, recently this aspect of the C-PACE has been gaining a lot of traction. Since the COVID-19 pandemic hit, lenders realized how these loans could help business owners free up capital for so many commercial building owners.
Surprised to hear about the retroactive option? You’re not alone. It wasn’t exactly heavily advertised.
Many people who would love to take advantage of an opportunity like this don’t realize they can get cash for improvements they have already made. California allows for retroactive funding of work done within the last three years. When your loan is approved, set terms are based on the remaining life of the equipment installed.
Save Cash Instantly and Get Tax Incentives
The money you save from implementing clean energy typically exceeds the annual payments, meaning you save money right away. C-PACE investments are repaid through a special tax assessment, which means payments are due with property taxes. The owed amount is a line item on the borrower’s tax bill.
Payments won’t increase over time—and remember, repayment obligation transfers to the next owner if you sell the property. You only pay for what you use! It’s because C-PACE financing is legally not debt, using off-balance sheet financing, which won’t have a negative impact on your balance sheet.
Increase Property Value and Demand
Improving cash flows and creating more efficient operations increases the value of your property. It also gives you control over energy costs, freeing you from worry about the uncertain energy spikes that you have no control over. With clean energy upgrades, you gain more control of your finances.
Also, today’s consumers like buildings that have clean energy upgrades. These changes make the property overall more desirable to buyers or renters.
Learn More About GreenPACE’s C-PACE Program—and How It Can Help You Now
Make sure you secure your C-PACE financing from a nationally recognized finance company that specializes in financing programs for solar and commercial property improvements.
GreenPACE Capital provides businesses, non-profits, and tax-exempt organizations with access to energy-efficient upgrades to save them thousands of dollars every year, all while making a difference for the planet. Our experts are here to give you guidance and explanations through the C-PACE process and get cash for your business, with no money down.