Florida C-PACE Financing Program
The move towards more energy efficiency commercial buildings has progressed slowly due to the high costs associated with renovating buildings with renewable energy upgrades.
Today more and more, business owners are turning to the (C-PACE) Commercial Property Assessed Clean Energy financing as a way to pay for these upgrades as they look to shrink their environmental footprint and save money on utility bills.
What is Commercial Property Assessed Clean Energy?
According to the Department of Energy website, “(C-PACE) Commercial property-assessed clean energy is a financing structure in which building owners borrow money for energy efficiency, renewable energy, or other projects and make repayments via an assessment on their property tax bill. The financing arrangement then remains with the property even if it is sold, facilitating long-term investments in building performance. CPACE may be funded by private investors or government programs, but it is only available in states with enabling legislation and active programs.”
It is easy to see how C PACE financing can be a great option for commercial property owners looking to make improvements. You also have the opportunity to recapture capital used for improvements in the last 12 months that qualify.
C-PACE allows commercial building owners to take control of their energy costs and improve cash flow resulting in lower, more predictable energy costs.
Here is a comparison between C-PACE financing and traditional bank financing
Comparing: | C-PACE | Traditional Financing |
Typical Financing Term | Up to 30 years | Usually 5-10 years* |
Cash Flow Benefit | Immediate | Delayed** |
Balloon Payment? | No | Yes |
Financing Can Stay with Property Upon Sale? | Yes | No |
Pass Through Financing Payments to Tenants? | Yes | No |
Avoid Borrower Guarantees? | Yes | No |
Avoid Financial Covenants? | Yes | No |
Avoid Interest Rate Risk? | Yes | No |
Avoid Quarterly Bank Reporting? | Yes | No |
For more information on Commercial Property Assessment Clean Energy and to find whether C-PACE financing is a good option for you click here