Issues & AdvocacyState
Property Assessed Clean Energy (PACE) Financing Now Available in Connecticut
By Zachary Hart, Manager, State Relations
C-PACE, Connecticut’s statewide property assessed clean energy (PACE) financing program launched late last month. C-PACE allows commercial, institutional, and multi-family building owners to access low-rate, long-term financing for energy upgrades. The obligation is repaid through a property tax assessment that is secured by the property, not the owner’s credit. The assessment stays with the property, even if it is sold to a new owner. A key provision to qualifying for C-PACE financing is that the energy project must be predicted to save more in energy costs than the owner must periodically pay back. This means that the owner will begin to obtain savings immediately after project completion. To learn more about how PACE financing works, see PACENOW’s website.
Funding for C-PACE projects will be supplied by private capital providers and will be available in the municipalities listed here. Other municipalities may opt in to the C-PACE program by having their legislative body agree to assign and collect assessment for the Connecticut Clean Energy and Investment Finance Authority, who oversees C-PACE. The new program counts on energy services providers to market the new financing tool. Connecticut architects who have clients whose buildings are in need of energy upgrades or renovations but have been unable to secure financing for the projects, should bring C-PACE financing to their attention.
While 27 states and the District of Columbia have passed legislation to enable PACE financing, there are currently only a handful of operating programs. Success in Connecticut could result in a rapid increase in the number of PACE financing programs available nation-wide. If you are interested in helping your state pass PACE enabling legislation or, if you live in a state where PACE financing is legal and want to encourage your municipality to set up a PACE program, please contact the AIA State and Local Relations team at email@example.com.
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