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.
The financing is provided by private capital providers in an open market, which provides property owners with competitive terms. The financing is secured by using the local government’s ability to place a voluntary energy assessment and assignable lien on the owner’s property. The financing is repaid to the private 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 enables 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 economy 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.
SRS administers C-PACE programs for Utah cities and counties that want to enjoy all of the benefits without committing staff and resources to administering their own C-PACE program. By opting-in, your community authorizes SRS to handle all program administration responsibilities at no fee to the local government.
You may request a copy of the program administration agreement here.