Frequently Asked Questions

C-PACE Basics 

What is C-PACE financing? 

C-PACE (Commercial Property Assessed Clean Energy) financing is a long-term, fixed-rate, non-recourse financing solution that allows commercial property owners to fund energy, water, and resiliency improvements.
 
It is repaid through a special assessment on the property tax bill rather than traditional loan payments. C-PACE programs are enabled at the state level and can finance upgrades such as HVAC systems, solar, lighting, insulation, and storm-resiliency improvements.

How does C-PACE financing work? 

C-PACE financing works by providing capital for eligible building improvements that is repaid through a long-term property tax assessment. 

The financing is secured by the property, not the owner, and typically represents up to ~35% of the property’s appraised value (subject to program guidelines). The assessment stays with the property and may transfer upon sale, and can often be prepaid.

Who qualifies for a C-PACE loan?

C-PACE financing is available to owners and developers of commercial properties, including hospitality, industrial, office, retail, mixed-use, and multifamily properties (typically 5+ units). The properties must be located in a state with an active C-PACE lending program, and their eligibility depends on local regulations and project scope.

What are the benefits of C-PACE financing? 

C-PACE offers several structural and economic benefits within the capital stack: 

• Non-recourse: Secured by the property, not the sponsor  

• Long-term financing: Terms up to 30 years  

• Fixed-rate structure: Reduces interest rate volatility  

• Lower cost of capital: Often cheaper than mezzanine debt or preferred equity  

• No ownership dilution: Unlike equity, it preserves sponsor control  

• Transferable obligation: May remain with the property upon sale 

What properties/projects are C-PACE eligible?  

• Eligible Property Types: Commercial Office, Multifamily, Industrial, Mixed-Use, Retail, Hospitality, Senior Living, Self-Storage, Parking, Data Centers, Agriculture, and Theatres 

• Eligible Project Types: New construction, renovation, gut rehab, adaptive reuse, solar, roof projects, and refinancing of any of these projects 

Is C-PACE available in my state?

C-PACE is currently active in more than 35 states and Washington, D.C., with availability determined at the state and local level. 

Program guidelines, eligible improvements, and financing structures vary by jurisdiction. Wondering if C-PACE is available for your project?

What building upgrades does C-PACE finance? 

 

C-PACE finances a variety of renewable, energy-efficient, and resiliency projects, including: 

• HVAC systems (boilers, chillers)

• High-efficiency lighting 

• Building envelope improvements 

• Roof replacement 

• Renewable energy systems 

• Water conservation measures 

• Seismic and resiliency upgrades 

Is C‑PACE debt or equity? 

C‑PACE is a form of debt financing, not equity. The property owner borrows funds to pay for energy efficiency, renewable energy, or resilience upgrades, and the loan is secured by a property tax assessment lien rather than ownership interest in the property. 

Who funds C‑PACE loans?

C-PACE financing is provided by private capital providers, including dedicated C-PACE lenders, institutional investors, and specialty finance platforms. 
Local governments do not provide funding; they facilitate repayment through the property tax assessment mechanism. 

Is C‑PACE government funding?

No, C-PACE is not government funding. While the program is enabled by state and local legislation and uses local government infrastructure to collect repayment through property taxes, the actual financing comes from private lenders or investors, not public funds.