Utah C-PACE may help you close more projects
Utah C-PACE for Renewable Energy Contractors
How often does your sales team identify a potential new client, who, after expressing initial interest, shuts down because he or she is unwilling to self-fund the proposed project or take out a bank loan? If this sounds familiar, you’ll be happy to know that there’s a new way to pitch solar PV projects—and it’s proving very attractive to property owners. It’s called C-PACE, and it focuses on developing cash-flow-positive projects that provide up to 100 percent financing and put money in the property owner’s pocket. It also enables you to deliver energy savings and cash-flow projections that:
- Integrate long-term (up to 30-year) financing,
- Incorporate ITC and MACRS depreciation to maximize cash flow (where applicable), and
- Include a repayment obligation that can transfer to the next property owner in the event of a sale.
With C-PACE, commercial and industrial property owners can:
- Lower their energy costs,
- Potentially increase the value of their building, and
- Potentially increase their cash flow.
This innovative, government-sponsored financing program may help remove the barriers that stall your solar PV projects, enabling you to grow your business.
How does C-PACE work?
Commercial property assessed clean energy, or C-PACE, is an energy financing program that has been adopted by more than 30 states, including Utah. 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 commercial or industrial property. See a list of eligible improvements.
Under the C-PACE Act, solar PV projects in the Rocky Mountain Power service territory are limited to 2 MW for existing building (there is no cap for new construction). Solar PV projects are prohibited in rural electric co-op territories.
What is the Process?
Contractors are encouraged to complete a C-PACE training in order to engage 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. Note that by providing this list, OED is not recommending or endorsing any specific contractor.
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 can help you grow your business.