A Guide To Commercial Property Assessed Clean Energy Financing
Are you a current commercial business owner interested in making your investment more energy efficient? Commercial Property Assessed Clean Energy, or C-PACE is a newer program that provides commercial businesses the funding for renewable energy improvements and energy efficient building upgrades. If you are a commercial business owner in the area of Conyers, Georgia, and want to know more about your financing options, Preferred Capital Funding can help. Continue reading to learn more about Commercial Property Assessed Clean Energy lending.
What Is C-PACE Financing?
C-PACE helps commercial property owners obtain financing to make building upgrades that improve energy efficiency and utilization of renewable energy. C-PACE uses borrowed funds to help pay for these green improvements, similarly to other types of real estate financing, however, it is not a traditional type of loan, but classified as a lien since the borrowed money is repaid by a voluntary tax assessment over a period of time. As a result of the security that this tax assessment offers, several advantages are made available, such as the ability to transfer repayment obligations to a subsequent property owner and longer term financing. C-PACE funding can be used for a variety of project types, including solar paneling, recycled energy, EV charging stations, water conservation systems, roof replacements, HVAC upgrades, energy efficient lighting, stormwater management, and much more. Some states will offer C-PACE retroactive payments for improvements that have already been completed as well as funding for new construction. C-PACE requires authorization first by state legislation, then approval from local governments. It is not a federal program and doesn’t use public funding; instead, private companies serve as C-PACE lenders.
The Benefits of C-PACE
The commercial property assessed clean energy program offers many benefits for business owners, lenders, and local governments. C-PACE helps property owners invest in green improvements to help them save money through reduced energy costs that they would not ordinarily be able to afford. C-PACE also offers competitive interest rates and lower fees because the tax assessment process poses a lower risk and is considered secure. Because C-PACE funding is categorized as a priority lien, lenders are basically guaranteed a return on their investment because if a borrower is unable to make payments, the next owner to occupy the property takes over the payments. C-PACE funding also helps local governments make progress towards energy initiatives, and it helps create more jobs.
Get C-PACE Assistance For Your Business
If you are interested in obtaining financing to help upgrade your business investment and make it more eco-friendly and energy efficient in Conyers, Georgia, contact Preferred Capital Funding today for a consultation. We can work closely with you to determine the best financing option for your situation.
