Commercial Property Assessed Clean Energy, or C-PACE financing, which allows commercial property owners to borrow money for energy efficiency, renewable energy generation, water conservation and other upgrade projects, is a growing market, and is largely being provided by private equity firms.
According to the C-PACE Alliance, a non-profit that works to increase the volume of quality projects, this loan market is growing nicely (see chart below). The market hit over $10 billion in total originations by the end of 2024.
Jared Schlosser, the executive vice president and head of hotel originations and C-PACE at Atlanta PE firm Peachtree Group, says the firm has averaged 25 percent year-over-year growth since it started C-PACE lending at the end of 2019. He expects the market to grow as more states get access to C-PACE.