Commercial Property Assessed Clean Energy lending is a valuable tool for business owners who want to make energy efficient upgrades to their commercial buildings.
The program — commonly referred to by its acronym, “C-PACE” lending – provides commercial building owners capital to invest in a number of different sustainable projects, including the installation of solar panels, upgraded heating and cooling systems and electric vehicle charging stations.
Here’s a quick explanation of how C-PACE lending works and how interested business owners can apply for funding through Sunrise Banks.
What Is C-PACE Lending?
C-PACE lending is a program run by more than 37 states across the country that allows business owners to finance energy-efficient renovations. The program incentivizes sustainability and helps businesses overcome one of the biggest obstacles they face when implementing green upgrades: cost.
Through Minnesota’s C-PACE program, commercial real estate owners receive capital for building upgrades at up to 100% of cost. The funds are paid back through property tax assessments.
What Projects Are Eligible?
Projects eligible for C-PACE lending include, but are not limited to:
- Solar power projects
- Wind power projects
- Projects that include infrastructure for charging electric vehicles
- High-efficiency lighting projects
- Heating, Ventilation and Air Conditioning (HVAC) upgrades
- Fuel cell projects
C-PACE financing can cover equipment, installation, permit, inspection, design and labor costs for eligible projects.
How Does C-PACE Lending Benefit Business Owners?
C-PACE lending is beneficial for several reasons.
For one, it doesn’t require business owners to provide any upfront funding. All eligible C-PACE borrowings are paid back through semi-annual property tax assessments.
This process allows business owners to increase their cashflow thanks to cost-savings created through more energy efficient processes and equipment.
C-PACE financing also creates jobs and promotes sustainable business practices. This focus on green energy is especially important given the urgency of the climate crisis.
Businesses can set an example for their competitors and clients by investing in energy-efficient means of powering their operations through C-PACE financing.
How Can I Apply?
Sunrise Banks offers C-PACE financing for businesses in any industry. Those interested in applying can learn more and contact a banker here.