What is C-PACE?

Commercial Property Assessed Clean Energy (C-PACE) is a relatively new and quickly growing alternative financing mechanism for energy efficiency, water efficiency, renewable energy and resiliency projects.

C-PACE makes it possible for owners and developers of commercial properties to obtain low-cost, long-term financing which is paid back through an annual assessment on the organization’s property tax bill.

Through C-PACE, businesses can finance building retrofits, gut rehabilitations and new construction with no upfront costs and, in some markets, eligible projects can be funded retroactively to replace more expensive financing.

Game-Changing Public-Private

C-PACE is a public-private partnership enabled by state and local legislation, allowing private lenders to provide financing for eligible measures that improve building energy performance.

C-PACE facilitates the reduction of greenhouse gas emissions by making the shift to clean energy sources a financial reality and plays a vital role in supporting state and local governments in their initiatives to drive sustainable, efficient upgrades within their community’s infrastructure. All of this is accomplished while reducing costs for building tenants and enhancing property values for building owners and developers.

How it Works

C-PACE assessments are repaid through a special property tax assessment similar to other public benefit assessments for sewer and road improvements. This unique assessment structure provides numerous benefits for property owners and developers.


States pass legislation authorizing C-PACE financing, administrators are selected to regulate the C-PACE program and taxing authorities (counties, cities) may choose to opt into the program


Developers and owners secure C-PACE financing from Petros PACE Finance


Assessment is repaid via a special assessment on the property tax bill

  • Fixed-Rate
  • Non-Recourse
  • Long-Term

Who Benefits From C-PACE?

C-PACE financing can produce immediate positive results for the stakeholders involved in the project including the owners, developers, cities and local governments, mortgage lenders, tenants, and contractors and service providers.

Owners & Developers
  • Cash flow generation. No upfront costs or down payment generates immediate cash-flow for property owners and investors.
  • Increased property value. Owners and investors are able to invest in properties even with the intention to sell in the future, benefiting their bottom line and inevitably leading to increased property value.
  • Decreased maintenance costs. Clean energy retrofits that equip buildings with sustainable amenities decrease ongoing maintenance costs that positively impact NOI.
  • Certainty of close. Mitigated risk and the lack of a personal guarantor ensures a feeling of security when choosing C-PACE financing as the route to a secure investment in a property.
  • Lower cost of capital. C-PACE displaces expensive mezzanine debt in the capital stack.
  • Fills gaps in the capital stack. C-PACE closes the gap with non-recourse and non-accelerated financing.
  • Public-private partnership development tool. C-PACE promotes sustainable development for constituent’s infrastructure.
  • Creates jobs. Project construction spurs economic development.
  • Drives sustainability. C-PACE supports local governments’ energy and carbon reduction goals and provides a tool for investing in upgrades without the use of any taxpayer dollars.
  • Increased collateral value. Upgrades improve property values and building performance.
  • Non-recourse and nonaccelerated financing. Only PACE assessments in arrears are senior to mortgage – future assessments do not accelerate upon default.
  • Improved debt service coverage. Energy savings from the project and lower annual debt payment from a cheaper source of capital compared to mezz can provide positive cash flows and increase NOI, improving debt service coverage ratio.
  • Removal of financial barriers for customers. C-PACE eliminates a common client objection as they now move forward with the project without upfront costs.
  • Ability to fund a deeper list of improvements.
  • Opportunity to grow business with new customer segments.
  • Deal flow acceleration. Improves business development and project initiation by eliminating financial hurdles.
  • Sustainability. Building tenants, who are increasingly seeking out sustainable properties as part of their corporate commitments to the environment, will realize the impact of cleaner air, cleaner water, and reduced energy usage almost immediately.
  • Energy savings. These energy savings can be passed down to tenants via their utility bills and common area maintenance costs.

C-PACE Benefits

C-PACE financing is an excellent way to finance your building’s energy upgrades. It can spread out the upgrade costs, free up your yearly budget, realize dramatic energy cost savings, and reduce your credit risk.

100% financing of hard and soft costs with no out-of-pocket

Increases net operating income and property value

Fixed-rate financing with up to 30-year terms

Promotes economic development and urban revitalization

Ability to recover as an operating expense

Displaces higher cost mezzanine and equity capital

Decreases utility and maintenance costs

Facilitates sustainable building design

C-PACE Footprint

See the map below to determine if your state has existing legislation permitting the use of C-PACE financing for retrofits, gut rehabs or new construction. Petros PACE Finance has funded transactions in 16 states plus Washington D.C.

  • Active C-PACE Markets
  • Petros Funded Transactions

C-PACE vs Alternatives

C-PACE financing is a game-changer compared to traditional financing options. C-PACE can provide low-cost capital at up to 25% LTV when utilized alongside a mortgage for a typical CLTV of up to 95%. C-PACE from Petros PACE Finance can effectively displace or replace entirely expensive equity or mezzanine debt in a capital stack. See how your financing options compare below.

C-Pace Financing Bank or Private Loan Internal Funding
Downpayment 0% Up to 20% of asset value N/A
Finance Rate Market Rates Competitive None
Term 15-30 Years 1-7 Years N/A
Debt Capacity Remains the Same Reduced Reduced
Upon Sale Lien Tied to Property Balloon Paid Off
Approval Time 30-90 Days Up to 1 Year N/A
Financing Fees 0-3% 1-2% N/A
Recourse to Owner *Non-recourse after construction Usually N/A
Acceleration None Yes N/A
Min Investment $500,000 Varies N/A
Max Investment Up to 30% LTV, $200M + Varies N/A