Commercial Property Assessed Clean Energy (C-PACE) is a structure through which commercial property owners can finance energy efficiency and renewable energy improvements through financing secured by a voluntary benefit assessment on their property and repaid via the property tax bill. A tax lien, or benefit assessment, is placed on the improved property as security for the loan, and the Connecticut Green Bank requires lender consent from existing mortgage holders prior to approving a C-PACE project. With C-PACE, property owners are able to finance projects over up to 25 years. Together with a statutory requirement that expected energy savings exceed financing obligations levied on their property tax bill makes for a compelling value proposition for businesses. In 2014, the CGB became the first to securitize energy efficiency loans through C-PACE.
In February 2020, CT Green Bank announced that the state’s C-PACE program surpassed 300 closed projects at the end of 2019, reaching a total of more than $163 million in clean energy financing investment in local businesses.