Earlier this week, Oklahoma County authorized the use of C-PACE (Commercial Property Assessed Clean Energy) Financing for commercial property owners within its borders. This is an exciting development, as it opens up this powerful financing tool that has been successfully deployed in many other parts of the country to developers and property owners here in the Oklahoma City area. Let’s start by answering some common questions:
- How does C-PACE financing work?
- What kinds of improvements are eligible under C-PACE?
- What are the financing terms when using C-PACE funds?
How does C-PACE financing work?
C-PACE is a national initiative that provides a framework for states and counties to work with lending institutions to fund projects that add clean energy upgrades to new or existing commercial structures. The borrowed capital is paid back over time through a long-term special tax assessment on the property. This assessment stays with the property in the event of a transfer of ownership. This mechanism provides security to the lender, which results in more favorable financing terms for clean energy and resiliency upgrades that can have longer payback periods when compared to conventional building materials/systems.
What kinds of improvements are eligible under C-PACE?
While the term “Clean Energy” is used in the C-PACE acronym, a wide array of efficiency and resiliency upgrades are eligible for new construction or retrofit projects that are financed under the program. Here are a few examples (we can work with you to determine which upgrades would be eligible for your specific project):
- Solar PV Arrays
- Insulation & Building Envelope
- Indoor & Outdoor Lighting
- HVAC Equipment & Controls
- Elevator/Escalator Equipment
What are the financing terms when using C-PACE funds?
C-PACE lenders provide long-term, fixed-rate financing with up to 30-year terms. This can be a compelling option when compared to traditional, more expensive sources of capital. C-PACE funding can be used alongside other sources of capital to complete your new construction or retrofit project.
Solar Creations has excellent relationships with a number of trusted local contractors who can provide installation services on equipment that is eligible under the C-PACE program. This includes HVAC, roofing, insulation, and more. We will work with you to bring all of these elements together to make your new construction or retrofit project that utilizes C-PACE funding a success.
When it’s time to discuss details and secure financing, we can happily connect you with a firm that specializes in C-PACE funding to discuss the details of your project and how this financing tool can be deployed most effectively.