With energy costs being an important aspect of a business, new financing models like Commercial Property Assessed Clean Energy (C-PACE) aim to increase energy savings through attractive long-term loans. The PACE program is a third party finance loan program that focuses on generating immediate positive cash flow for a business. Together, New Energy Improvement District, Colorado Energy Office and Sustainable Real Estate Solutions are helping commercial businesses install energy efficiency and renewable energy technologies that require zero upfront costs and cash flow positive in year one. PACE is designed to offer businesses who lack the credit quality and budget for large capital intensive projects to reap the benefits of energy improvements.
HOW IT WORKS?
Owners repay the cost of eligible improvements over a period of up to 20 years through an additional charge (“assessment”) on their property tax bill (similar to a sewer assessment). The resulting energy savings typically outweigh the annual assessment payment thereby enabling cash flow positive projects. Because the assessment is tied to the property, the repayment obligation automatically transfers to the next owner if the property is sold.
A SMARTER WAY TO A MODERN BUILDING
• 100% financing
• No out-of-pocket expense
• Long term (up to 20 years)
• Lower energy costs
• Cash flow positive projects
• No personal guarantees
• Loan does not show up as debt on the business’ balance sheet
• Increases building value and net operating income
• Competitive rates & terms
• Owner retains all tax incentives
• Assessment automatically transfers to new owner upon sale
• Preserves capital for core business
Eligible Property types:
• Multifamily (5 units+)
New Construction is Eligible! Colorado’s Program is the first in the country to provide C-PACE financing for certain energy efficiency upgrades in new construction. By choosing equipment that produces savings “above” the local IECC code, the owner can finance up to 15-20% of the total building construction cost through C-PACE. This groundbreaking new construction financing is leading many building owners to go beyond the “norm” and engineer award winning, highly efficient, employee friendly buildings.
How will Sopris Solar help in the process?
Our role is to not only recommend the best Solar power system for the building, but also give as complete a look as possible at the financial benefits, both in terms of projected energy savings and all the tax benefits. Our C-PACE cases presented are very detailed, cover year by year for the duration of the solar panel warranty of 25 years, and completely cover all aspects. We’ll show where the business is now and where it will be as the years go by as a result of adopting solar energy.
To know what solar power can achieve for your business and get a detailed C-PACE case prepared, please contact Nathan Billmaier, our commercial project sales manager at 720-427-5973