How C-PACE goes to work for capital providers
Aligning with the Connecticut Green Bank
Because the C-PACE program is administered by the Connecticut Green Bank, capital providers know they are working with an established, state-sponsored financial institution with a track record of opening the green energy market statewide. Now, with demand for clean energy and energy efficiency expanding, the Green Bank continues to grow the market by building confidence in C-PACE and its ability to capitalize on the power of energy improvements. Capital providers involved in C-PACE play a central role in building stronger businesses and stronger communities, and when they realize new investment opportunities through C-PACE, they enjoy many benefits of their own.
One of the most valuable aspects of C-PACE financing is its repayment through participating municipalities’ property tax collection systems. This automates repayment – and reduces risk. Furthermore, C-PACE is a priority lien, so it is collected in the same manner as and subject to the same penalties, and remedies as real property taxes. By statute, C-PACE Benefit Assessments are senior liens, subordinate only to real property tax liens.
The socially responsible investment
As part of a portfolio of investments, C-PACE projects represent innovation, social responsibility, and a commitment to the future because they create healthier businesses and healthier communities.
The power of 100% financing
The simple fact is that many commercial building owners want to reduce their energy usage and to use energy from cleaner, more reliable sources, but they lack the funds to undertake large-scale projects involving solar, heating and cooling technologies, and other energy efficiency measures that reduce costs.
C-PACE, with 100% financing, enables building owners to tackle large projects that can produce immediate savings and preserve cash flow. This creates an opportunity for capital providers to bring their lending power to a sector of the market where others failed to capitalize on opportunity.
Immediate ROI for the property owner
Property owners who use C-PACE experience its impact right away through monthly savings in energy expenses. State statutes require C-PACE projects to have a Savings to Investment Ratio (SIR) greater than 1, meaning that projected lifetime savings from the improvements must exceed the total investment (including financing costs) over the lifetime of the measures. This helps to ensure building owners can meet their financial obligations (including those to the capital provider) and remain competitive.