Commercial Property Assessed Clean Energy (C-PACE) was enabled in Pennsylvania in the summer of 2018. The legislation allows local governments to establish a C-PACE loan program for commercial, agricultural and non-profit building owners to obtain low-cost, long-term financing for energy efficiency, water conservation and renewable energy projects, that is repaid through an additional tax assessment on the property. 100% up-front capital is provided from private sector lenders. A payback term of up to 20+ years can ensure that energy savings are greater than the annual C-PACE tax loan payment, which means that not only is the energy efficiency of the building improved, but so is the organization’s cash-flow. A C-PACE loan is attached to the building. If sold, C-PACE transfers to the new owner, along with the updated system(s) and energy savings.
Wayne was the first rural county to adopt C-PACE, the only in northeast PA to date!
Sustainable Energy Fund (SEF) near Allentown, has been selected as the C-PACE program administrator. SEEDS (Sustainable Energy Education and Development Support) of Northeastern PA, based in Wayne County will continue educational efforts about C-PACE projects, and their energy conservation and economic benefits.
If you were the owner of a commercial property, and you were spending $10,000 a year on energy costs, would you pay $30,000 to cut those energy bills in half? Well, you might, but two of the biggest obstacles are the upfront cash for the project, and how long are you going to own that commercial property? If you aren't going to own it for the long term, you may not get the return on your investment. These are two of the major obstacles for energy efficiency projects, and C-PACE addresses both of them. Improve energy efficiency, improve collateral and cash-flow.
Eligible projects include: Energy Savings Projects; Water Savings Projects; Renewable Energy Installations, including:
• LED lighting and/or lighting sensors and controls
• Heating ventilation air conditioning (HVAC) upgrades
• Variable speed drives (VSDs) on motors, fans, and pumps
• High efficiency chillers, boilers/ furnaces, heat pumps, hot water heating systems
• Building envelope improvements, including insulation, air sealing and windows
• Process equipment upgrades and changes
• Green roofs
• Installation of low-flow faucets or toilets
• Implementing processes or equipment that demonstrates water savings of 25% or more
• Condensate water reuse for cooling towers, for steam boilers, irrigation, evaporative coolers, industrial laundry, decorative water features, water cooled equipment, etc.
• Improvements to reduce industrial water consumption
• Replacement of pre-rinse valves, dishwashers, and icemakers in commercial kitchens
• Solar photovoltaic power, Solar thermal
• Wind power
• Methane gas from landfills or anaerobic digestion
• Sustainable biomass facility used for heating and/or generation
Eligible buildings include buildings used for commercial or nonprofit purposes such as retail, industrial, office, agricultural, and hospitality uses. Eligible property does not include any type of residential property, municipal buildings or multifamily housing.
Other eligible buildings may include new construction, fire halls, historic buildings that will be used for commercial purposes, private schools, nursing homes, etc.
A C-PACE loan can be as little as $50,000 and a maximum of $10,000,000.