Displayed below is a list of Frequently Asked Questions (FAQs). Click on the “>” icon associated with each question to view the answer.
C-PACE projects typically range from $200,000 to over $1.0 million. There are no C-PACE program-defined minimum or maximum project financing size limitations. Rather, each participating capital provider is expected to set their own financing parameters.
Repayment of the C-PACE financing is secured by a voluntary energy assessment that is recorded in the property records of the municipality in which the property is located.
C-PACE assessment repayment is managed directly by the capital provider to expedite collections and reduce the C-PACE program administrative fees.
Under the C-PACE Act, the voluntary energy assessment is subject to the same penalties and the same procedures in the case of delinquency as is provided for through ad valorem (i.e., property) taxes. The C-PACE voluntary energy assessment has priority over all private liens on the property, is of equal priority to other special assessments and general property taxes. In the event of a default, only the amount of the assessment in arrears is due.
Because the C-PACE repayment obligation is tied to the property, the assessment can transfer to the next property owner if the property is sold.
If a property owner is deficient or delinquent on the C-PACE payment, the C-PACE program is not responsible for covering the shortfall. In the case of a non-payment, the voluntary energy assessment (which is a priority lien) will fall into arrears and be repaid after all other taxes are satisfied and prior to any outstanding mortgage.
Municipal liens related to real property have first priority, followed by any C-PACE payments in arrears, followed by non-real property municipal liens and assessments, followed by the first mortgage holder.
Repayment periods span up to 30 years, depending on the owner’s preference, and are limited by the weighted average effective useful life (EUL) of the financed improvements.
Property owners are encouraged to pursue available federal investment tax credits (ITC), utility rebates, and all other available incentives. All or a portion of total incentives may be subtracted from the amount financed under the C-PACE program.
No, there is no fee to apply for C-PACE financing.