How C-PACE works
utah C-PACE and Municipalities
Are you trying to create new jobs? Are you looking to improve air quality? If so, C-PACE is an innovative program that can help you achieve these goals in partnership with your local property owners. Local property owners can modernize their commercial and industrial buildings through affordable, long-term private financing for eligible energy improvements.
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 by using the government’s ability to place a voluntary energy assessment and assignable lien on the owner’s property. The project is repaid to the capital provider over a term 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 appealing to tenants and new businesses after a C-PACE project.
C-PACE may benefit your community’s economic by stimulating new investment, creating job opportunities, and enabling energy savings. Updated buildings can have improved tenant occupancy. The energy savings from the project can often exceed the repayment, resulting in net positive cash flows for the property owner.
Reduced energy use results in less demand on the grid and improved reliability for the community. In addition, it reduces the building’s emissions, which improves the local air quality.
Nationwide, more than 30 states have PACE-enabling legislation, and several others are considering it.
OED operates the C-PACE District, which administers C-PACE projects. Cities and counties join the C-PACE District when they want to enjoy all of the benefits without committing staff and resources to creating their own C-PACE programs. By opting-in, your community allows the C-PACE District to handle all education and outreach, project development, recording, and project closing.
The opt-in process involves signing the Governing Body Participation Agreement and passing a resolution. You may request these documents here.