C-PACE is Colorado’s Commercial Property Assessed Clean Energy finance program, which uses private dollars to provide long-term, fixed-rate capital to building owners to improve the energy efficiency of their buildings. A closer look at what can be included might surprise you because most CapEx projects impact energy usage.
For retrofits, C-PACE financing is typically used for new HVAC systems, boilers, controls systems, and LED lighting. However, now that building owners are seeing the value of 20-year, fixed-rate, non-recourse capital, they are simply looking to finance everything in their CapEx budget through C-PACE.
For example, an HVAC and LED lighting retrofit pencils really well using C-PACE — adding $25,000 to the annual property tax assessment for each $300,000 borrowed, or a 50¢/sf pass-through for a 50,000 square foot building. Using C-PACE to finance must-do projects in your capital budget adds minimal uplift to the property, while protecting your balance sheet and asset NOI.
So what else in your capital budget might be a good fit for C-PACE?
- A new roof
- New windows and doors
- Water fixtures and outdoor irrigation systems
- Pumps, fans, and motors
- On-site renewable energy systems
We are C-PACE project developers that expertly guide building owners to finance capital expenditure through energy savings. To learn more, contact us for an overview.