Utah C-PACE may help you close more projects
Utah C-PACE for Energy Efficiency Contractors
Have you ever proposed an energy efficiency project that stalled because your prospect either couldn’t self-fund it, or didn’t want to take out a bank loan? It’s a common scenario, because these types of projects typically require your customers to incur large, out-of-pocket expenses—cash they’d rather spend running their business.
Fortunately, there’s a new way for commercial and industrial property owners to finance energy efficiency improvements, and it’s proving extremely attractive. It’s called C-PACE, and it enables you to propose projects to your customers that:
- Are covered by up to 100 percent financing
- Lower their energy costs
- Typically generate positive cash flow
- May improve the value and comfort of their building
- Provide non-recourse financing
- Allow the repayment obligation to be transferred to a new owner if the building is sold
This innovative, government-sponsored program paired with private financing removes the barriers that stall jobs, which may enable you to get more projects off the ground more quickly—and grow your business in the process.
How does C-PACE work?
Commercial property assessed clean energy, or C-PACE, is a private financing program for energy improvements that has been adopted by more than 30 states, including Utah. (Note that this website only applies to participants in the C-PACE District that is administered and operated by the Governor’s Office of Energy Development (OED)).
The financing can be provided by capital providers in an open market, which provides property owners with competitive, private financing. The financing is secured through a voluntary energy assessment and assignable lien that is levied against the owner’s property and repaid to the capital provider; the term is typically based on the useful life of the improvements and can extend up to 30 years.
Because the long-term financing can cover up to 100 percent of a building’s modernization project cost and often requires no money down, C-PACE may enable property owners to make substantial upgrades to their buildings. The project’s energy savings may outweigh the C-PACE payments, which creates positive cash flow for the property owner, whose upgraded building may be more valuable after a C-PACE project.
What properties are eligible?
Properties eligible for C-PACE financing must meet two requirements. They must:
- Be located in a governing body that has opted in to the C-PACE District
- Have one of the following uses:
|Commercial||Private or public club|
|Industrial||A similar purpose|
|Manufacturing||Dwelling purposes with more than four rental units|
Which improvements are eligible?
Improvements that are eligible for C-PACE financing must be permanently affixed to the eligible property. See a list of eligible improvements.
What is the Process?
Contractors are encouraged to complete C-PACE training in order to engage with property owners to:
- Discuss the benefits of a C-PACE project,
- Perform preliminary project scoping,
- Prepare proposals and review them with the property owner,
- Develop and optimize project scenarios, and
- Install eligible improvements.
View a list of contractors that have completed C-PACE training.
How do I get started?
If you have a project in mind, you can fill out a project application with your property owner and submit it to the C-PACE District to start the process. Alternatively, you can register to attend one of our half-day workshops to learn more about the C-PACE program and how it works. (The workshop is free and your participation includes a complimentary company listing in the Contractor Directory on this website. Note that by providing this list, OED is not recommending or endorsing any specific contractor.)
Questions? Contact us to learn how Utah C-PACE may help you grow your business.