C-PACE FAQ
Frequently Asked Questions (FAQs) for Connecticut's Commercial Property Assessed Clean Energy (C-PACE) Program
Disclaimer: This document discusses Connecticut Green Bank’s role as a C-PACE lender and does not represent the rules or procedures of third-party C-PACE lenders outside of the Green Bank. For more information on the C-PACE program please refer to our Program Guidelines.
What is C-PACE?
Commercial Property Assessed Clean Energy, or “C-PACE,” allows building owners to borrow up to 100% of the capital for green or resiliency building upgrades, while making repayments through a benefit assessment lien. C-PACE is perfect for commercial property owners who need capital to make green upgrades, because it produces immediate and long-term savings for energy projects. You can read more about the program here.
What is the Connecticut Green Bank and what is your role in Connecticut’s C-PACE program?
The Green Bank was established by the Connecticut General Assembly in 2011. As the nation’s first green bank, it is leading the clean energy finance movement by leveraging public and private funds to scale-up renewable energy deployment and energy efficiency projects across Connecticut. The Green Bank’s success in accelerating private investment in clean energy is helping Connecticut create jobs, increase economic prosperity, promote energy security and address climate change. For more information about the Green Bank, please visit www.ctgreenbank.com.
The Green Bank is the administrator of Connecticut’s C-PACE program and provides financing for eligible projects.
How is C-PACE different from a bank loan?
C-PACE financing is secured by a benefit assessment lien that is attached to a property for the term of the loan. The assessment can be transferred to the new property owner if the property changes hands. C-PACE is a secure financing mechanism that allows fully amortizing, low-cost financing over terms ranging from 5 to 25 years. These terms are typically longer than terms offered by commercial banks. Renewable energy and energy efficiency projects are structured so that the total cost savings are greater than loan payments over the lifetime of the equipment that is financed.
What are the current C-PACE interest rates?
Please find the schedule of the Connecticut Green Bank’s current C-PACE rates and terms in our resource center.
C-PACE Eligibility
Is my property eligible for C-PACE?
Any type of commercial property, including manufacturing facilities, office buildings, retail establishments, houses of worship, non–profits, multifamily buildings of 5 units or greater, and others, can use C-PACE.
C-PACE can be used to retrofit an existing building, or to build a new building from the ground up.
What types of properties are not eligible for C-PACE?
State and municipally owned properties, and multifamily buildings with less than 5 units are not eligible for C-PACE.
Does it matter where my property is located?
The property must be in Connecticut, and within a municipality that has adopted the C-PACE program. A full list of municipalities that have adopted C-PACE can be found here. If you do not see your town listed, please contact us.
What types of improvements are eligible for C-PACE financing?
C-PACE can be used to finance up to 100% of the costs associated with energy-saving improvements (e.g., energy efficient lighting, HVAC, etc.), renewable energy systems (e.g., solar PV), EV charging infrastructure, and resilience measures. C-PACE can also be used to finance capital upgrades related to a C-PACE eligible improvement (e.g., roof upgrades required to install a rooftop solar PV system), energy assessments, and engineering costs. All C-PACE financed upgrades must be permanently affixed to an eligible commercial property, except for district heating and cooling systems and microgrids. More information on eligible improvements and eligible associated costs can be found in the Article 4, Sections 1 & 2 that cover Technical Standards.
Can C-PACE be used for gut renovation or ground-up new construction projects?
Yes, C-PACE new construction financing can be used to finance between 20 – 35% of the total eligible construction costs if the project meets the program requirements. You can read more about the C-PACE for new construction program here.
Getting Started
Do I need to use a C-PACE approved contractor?
No. The C-PACE program is open to all contractors. For your convenience, we have compiled a searchable list of companies who are familiar with our programs. We encourage you to obtain at least three competitive proposals before moving forward with a project.
I have not finalized my scope of work and savings; how can I get started with C-PACE?
Please contact us. We can help you and your contractor develop a C-PACE-eligible project. You may also use our list to find a contractor who is familiar with the C-PACE program.
When should I apply for C-PACE financing?
We invite you to apply when you have decided on a contractor who has furnished a proposal that includes the scope of work, and the total amount of financing you need. You do not need to have a signed contract with a contractor when you apply. Please reach out to us if you have questions about timing, eligibility, process or need other support getting your project ready for C-PACE.
How can I apply for C-PACE financing?
You can start the process by completing our C-PACE financing application.
C-PACE Program & Process
What is the C-PACE financing approval and closing process?
Once our team receives an application for C-PACE financing, we review the application to confirm if the project and property are eligible. If the project and property are eligible, the C-PACE team works directly with the borrower and contractor to collect required documentation and walk you through the underwriting and closing process. You can learn more about the C-PACE process here.
How long does it take to close on C-PACE financing?
The C-PACE process from application to closing can occur as quickly as one month. However, the C-PACE financing timeline typically coincides with the project development and construction timeline, and therefore, can be impacted by project delays or changes.
How does CPACE work with my existing mortgage or capital stack?
C-PACE financing is secured by a non-accelerating benefit assessment lien that is senior to all property-secured debt. Thus, other lenders must consent to the C-PACE assessment as part of the C-PACE closing process.
