Contractors

RI Commercial Property Assessed Clean Energy (C-PACE) is a financing program for commercial, industrial, agricultural, non-profit and multifamily (with 5 or more units) properties. C-PACE gives building owners owners access private-sector financing to upgrade their building with energy efficiency, clean energy, and water efficiency improvements. With C-PACE, building owners receive up to 100 percent financing with attractive repayment terms consistent with the useful life of the improvements (up to 25 years). This typically enables them to undertake larger building modernization projects that addresses multiple deficiencies.

In well-designed C-PACE projects, the energy cost savings exceed the PACE payments, creating a cash-flow-positive project. By using C-PACE, building owners can reduce their operating costs, improve the value and competitiveness of their building, meet energy performance goals, and increase their cash flow. C-PACE is also available to developers with new construction projects if they design their building to exceed current energy codes.

Repayment is facilitated through the municipal property tax assessment process. A voluntary assessment (similar to a sewer district assessment) is placed on the building owner’s property tax or other municipal bill. The assessment is repaid over the financing term (up to 25 years, project dependent) and the annual energy cost savings will, in most cases, exceed the annual assessment payment. As a result such projects are typically cash flow positive in the first year. Because the C-PACE assessment obligation runs with the property, the assessment automatically transfers to the next owner when the property is sold.

After a competitive bidding process, the RIIB selected Sustainable Real Estate Solutions, Inc. (SRS) to be the RI C-PACE program administrator.

Visit the Participating Municipalities page for a current list of municipalities participating in the C-PACE program. The program administrator can accept applications only from owners with properties located in a municipality that has opted in to the C-PACE program. If you have questions about getting any municipality to join C-PACE, email info@RI-CPACE.com.

While a contractor typically focuses on one or two aspects of energy efficiency or renewable energy, such as lighting, HVAC, or solar, for example, a C-PACE project developer focuses on more comprehensive retrofit projects. These firms have the capability to model various project scenarios for the building, help the building owner choose the financing that best meets their needs, and manage the project from application through close and beyond.

All contractors should be in compliance with Rhode Island State and local license requirements. In addition, attendance at one of the recurring C-PACE contractor training workshops is required to become a C-PACE registered contractor. There is no charge for attending these sessions. Visit the Events page for a calendar of scheduled workshops.

C-PACE provides regularly scheduled free training workshops for contractors. Visit the Events page for the upcoming schedule or email info@RI-CPACE.com.

C-PACE involves multiple steps that include:

• Contractor training
• Building selection and prequalification
• Preliminary project scoping
• Proposal preparation and review with the owner
• Project scenario development and optimization
• Project technical review
• Financing
• Construction
• Commissioning

For more information see the Process Flow Diagrams in the C-PACE Program Guidelines.

It depends on the complexity of the project. Single ECMs take just a few days. Complex projects that require audits and/or detailed engineering can take 6 to 8 weeks.

Timeframes are project-specific and depend on the number of parties involved. In a C-PACE project, the contractor, mortgage holder, and capital provider establish their own schedules with the building owner. Once a project has been approved for financing, it typically takes an average of 60 days to close.

Yes.

After a project has been reviewed by the program administrator, approved by the building owner and the mortgage holder (if any), participating capital providers will be offered the opportunity to finance the project. The capital provider selected by the owner will review all the project documentation (provided by the program administrator and the owner), prepare a financing agreement and schedule a closing.  Funds to initiate construction will be disbursed as provided in the financing agreement funds disbursement schedule.

The SIR tells all stakeholders whether a project will be cash-flow-positive. It is calculated by dividing the projected energy cost savings over the finance term by the total installed cost of the project, including the cost of equipment, installation, and financing.

While the C-PACE Statute does not require any SIR criteria, the program strongly encourages projects with an SIR>1 for the following reasons:

• Mortgage holders will be more likely to provide consent for projects that show positive cash flow
• Capital providers will look favorably on projects that show positive cash flow
• In general, the higher the SIR, the greater the demonstrated environmental benefits of the project, helping to promote the goals for the C-PACE program set forth in the C-PACE Statute.

A solar PV feasibility study must be prepared for any project that includes a solar PV installation. For multi-ECM projects, the contractor providing the non-solar ECMs should refer to the Audit Requirements section of the Program Guide. The methodology used for the savings projections are determined during the project development stage. In most cases, an ASHRAE Level I will suffice. For single ECMs such as a boiler replacement, the required documentation can be less comprehensive; however, it should facilitate an SIR calculation.

As is the case for all new and innovative programs, we anticipate a learning curve. Therefore, the program administrator will provide tools and support services to streamline the project submission, review and approval process. Regardless of the feasibility study and/or audit level, energy use data collection should comply with the ASTM E2797-15 Building Energy Performance Assessment (BEPA) Standard.

Three years of utility data is preferred with a minimum of one year, during which time no major renovations should have taken place. For more information, email info@RI-CPACE.com.

Yes. These costs are added to the costs of the solar installation and will reduce the SIR.

Yes. Since the energy savings are projected and future weather conditions are unknown, energy savings are projected using average conditions. These projections create baselines for the status quo (which assumes ECMs have not been installed) and for the projected case (which assumes the recommended ECMs have been installed).

All roof-mounted systems require an assessment and sign-off by a roofing contractor and a structural engineer. Refer to the C-PACE Program Guidelines or email info@RI-CPACE.com

Yes, but these savings must be directly related to the projected solar energy production.

While the default electricity/fuel-cost escalation factors, which are based on industry best practice, should be used, the program administrator will consider higher factors if the contractor submits the rationale for, and the calculations used, to arrive at a different cost escalation factor.

Yes, although the default system performance degradation factor, which is based on industry best practice, should be used. To use a lower factor, the contractor must submit a rationale for, and the calculations used, to arrive at a different performance degradation factor.

Yes.

The value of the MACRS needs to be provided by the prospective owner or his/her accountant.

No.

Yes, but there are hurdles. First, the owner would have to agree to a proposal that is not cash-flow positive. Next, the mortgage holder will have to consent. This should be discussed early in the process to minimize the chance that a project will fail after it has been developed.

The cost of the inverter (extended) warranty should be included in the cost of the project.

Yes. For more information, refer to the Program Guidelines or email info@RI-CPACE.com.

Yes, the program administrator can and will assist in the preparation of an application, if needed.

Yes. The program administrator routinely attends meetings with building owners and their contractors to support the program and respond to C-PACE related questions.

Yes.

0.5 percent.  A proposed de-rate factor that is less than 0.05 percent must be supported by data from the system’s manufacturer. In consultation with the solar contractor, any such proposal will be reviewed and either approved, modified or rejected by the program administrator.

The system commissioning plan is intended to confirm the proposed ECMs have been installed according to manufacturers’ guidelines and that the system will perform as expected.  Contractors are required to prepare a Commissioning Report and submit it to the owner and the program administrator. It should include as-built drawings, O&M manuals for each ECM and a narrative that is appropriate for the size and complexity of the project.

Yes.

There are many factors that can be adjusted, including cost, anticipated energy production, the potential use of tax credits, MACRS depreciation, and utility incentives. In addition, an owner can directly invest in a project to reduce the financed amount and thereby increase the SIR. The program administrator can model different scenarios to find one that will appeal to the owner and the mortgage holder.

The program administrator relies on cut-sheet data, which is combined with other project data included in the solar feasibility study, to confirm a project’s eligibility.

RI Commercial Property Assessed Clean Energy (C-PACE) is a financing program for commercial, industrial, agricultural, non-profit and multifamily (with 5 or more units) properties. C-PACE gives building owners owners access private-sector financing to upgrade their building with energy efficiency, clean energy, and water efficiency improvements. With C-PACE, building owners receive up to 100 percent financing with attractive repayment terms consistent with the useful life of the improvements (up to 25 years). This typically enables them to undertake larger building modernization projects that addresses multiple deficiencies.

In well-designed C-PACE projects, the energy cost savings exceed the PACE payments, creating a cash-flow-positive project. By using C-PACE, building owners can reduce their operating costs, improve the value and competitiveness of their building, meet energy performance goals, and increase their cash flow. C-PACE is also available to developers with new construction projects if they design their building to exceed current energy codes.

Repayment is facilitated through the municipal property tax assessment process. A voluntary assessment (similar to a sewer district assessment) is placed on the building owner’s property tax or other municipal bill. The assessment is repaid over the financing term (up to 25 years, project dependent) and the annual energy cost savings will, in most cases, exceed the annual assessment payment. As a result such projects are typically cash flow positive in the first year. Because the C-PACE assessment obligation runs with the property, the assessment automatically transfers to the next owner when the property is sold.

After a competitive bidding process, the RIIB selected Sustainable Real Estate Solutions, Inc. (SRS) to be the RI C-PACE program administrator.

Visit the Participating Municipalities page for a current list of municipalities participating in the C-PACE program. The program administrator can accept applications only from owners with properties located in a municipality that has opted in to the C-PACE program. If you have questions about getting any municipality to join C-PACE, email info@RI-CPACE.com.

While a contractor typically focuses on one or two aspects of energy efficiency or renewable energy, such as lighting, HVAC, or solar, for example, a C-PACE project developer focuses on more comprehensive retrofit projects. These firms have the capability to model various project scenarios for the building, help the building owner choose the financing that best meets their needs, and manage the project from application through close and beyond.

All contractors should be in compliance with Rhode Island State and local license requirements. In addition, attendance at one of the recurring C-PACE contractor training workshops is required to become a C-PACE registered contractor. There is no charge for attending these sessions. Visit the Events page for a calendar of scheduled workshops.

C-PACE provides regularly scheduled free training workshops for contractors. Visit the Events page for the upcoming schedule or email info@RI-CPACE.com.

C-PACE involves multiple steps that include:

• Contractor training
• Building selection and prequalification
• Preliminary project scoping
• Proposal preparation and review with the owner
• Project scenario development and optimization
• Project technical review
• Financing
• Construction
• Commissioning

For more information see the Process Flow Diagrams in the C-PACE Program Guidelines.

It depends on the complexity of the project. Single ECMs take just a few days. Complex projects that require audits and/or detailed engineering can take 6 to 8 weeks.

Timeframes are project-specific and depend on the number of parties involved. In a C-PACE project, the contractor, mortgage holder, and capital provider establish their own schedules with the building owner. Once a project has been approved for financing, it typically takes an average of 60 days to close.

Yes.

After a project has been reviewed by the program administrator, approved by the building owner and the mortgage holder (if any), participating capital providers will be offered the opportunity to finance the project. The capital provider selected by the owner will review all the project documentation (provided by the program administrator and the owner), prepare a financing agreement and schedule a closing.  Funds to initiate construction will be disbursed as provided in the financing agreement funds disbursement schedule.

The SIR tells all stakeholders whether a project will be cash-flow-positive. It is calculated by dividing the projected energy cost savings over the finance term by the total installed cost of the project, including the cost of equipment, installation, and financing.

While the C-PACE Statute does not require any SIR criteria, the program strongly encourages projects with an SIR>1 for the following reasons:

• Mortgage holders will be more likely to provide consent for projects that show positive cash flow
• Capital providers will look favorably on projects that show positive cash flow
• In general, the higher the SIR, the greater the demonstrated environmental benefits of the project, helping to promote the goals for the C-PACE program set forth in the C-PACE Statute.

The methodology for the savings projections is determined during the project development stage. In most cases, an ASHRAE Level I or II Audit will suffice. For single ECMs, such as a boiler replacement, the required documentation can be less comprehensive; however, it should facilitate an SIR calculation. For more information, refer to the C-PACE Program Guide.

As is the case for all new programs, a learning curve is expected. Therefore, the program administrator will provide tools and support to streamline the project submission, review and approval process. Regardless of the audit level, energy use data collection should comply with the ASTM E2797-15 Building Energy Performance Assessment (BEPA) Standard. Refer to Audit Requirements section of the C-PACE Program Guidelines.

The following list of typical, proven energy efficiency technologies is intended as a reference. The program administrator will review other proposed ECM(s) on a case-by-case basis.

Energy efficiency

• Automated building controls (BMS, EMS)
• Boilers, chillers and furnaces
• Building envelope (insulation, glazing, windows, etc.)
• High efficiency lighting
• Hot water heating systems
• HVAC upgrades
• Roof replacement
• Variable speed drives on motors, pumps and fans.

Renewable energy

• Combined heat and power (CHP) systems
• Fuel cells
• Geothermal systems
• Hydroelectric systems
• Small wind systems
• Solar PV
• Solar thermal.
• Renewable energy.

Water conservation

• Irrigation systems
• Low-flow fixtures (faucets, toilets, etc.).

Environmental health & safety

• Asbestos & lead abatement

Other eligible expenses

• Commissioning costs
• Construction costs related to an eligible improvement
• Energy audit costs
• Engineering and design expenses
• Measurement & verification costs
• Permit fees
• Renewable energy feasibility study costs.

This list is not comprehensive. Any improvements that result in utility cost savings and meet other program criteria will be considered under C-PACE.  See the C-PACE Program Guide, Section 3.B. Eligible Projects, for more information.

This scenario requires modeling. For more information, emai info@RI-CPACE.com.

Three years of utility data is preferred with a minimum of one year, during which time no major renovations should have taken place. For more information, email info@RI-CPACE.com.

Yes, provided it is related to water conservation, environmental health & safety, or a specific ECM. For instance, a roof or structural repair that is needed to support a solar system is eligible. The costs for such work will be added to the costs of the solar installation. These additional costs will reduce the SIR.

The most common include DOE’s eQuest and EnergyPro, although other models such as Trane’s Trace 700 and Carrier’s HAP model are also acceptable.

Yes. Since the energy savings are projected and future weather conditions are unknown, energy savings are projected using average conditions. These projections create baselines for the status quo (which assumes ECMs have not been installed) and for the projected case (which assumes the recommended ECMs have been installed).

Energy savings are calculated over the expected useful life of the specific ECM. In projects that incorporate multiple ECMs, the weighted useful life of the multiple ECMs is calculated and used to determine the maximum allowable finance term.

While the default electricity/fuel-cost escalation factors, which are based on industry best practice, should be used, the program administrator will consider higher factors if the contractor submits the rationale for, and the calculations used, to arrive at a different cost escalation factor.

Yes, although the default system performance degradation factor, which is based on industry best practice, should be used. To use a lower factor, the contractor must submit a rationale for, and the calculations used, to arrive at a different performance degradation factor.

Yes, but there are hurdles. First, the owner would have to agree to a proposal that is not cash-flow positive. Next, the mortgage holder will have to consent. This should be discussed early in the process to minimize the chance that a project will fail after it has been developed.

There are many pieces to the puzzle especially in projects with multiple ECMs.  Some ECMs with a low SIR might be eliminated and/or owners can agree to directly invest in the project. Each project is unique and the program administrator can model different scenarios to find the optimized scenario that will be most appealing to both the owner and the mortgage holder.

Cut sheets provide a wealth of data from the manufacturer of the ECM.  This data, when combined with other project data, is used by the program administrator to confirm project eligibility.

Yes, the program administrator can and will assist in the preparation of an application, if needed.

Yes. The program administrator routinely attends meetings with building owners and their contractors to support the program and respond to C-PACE related questions.

The system commissioning plan is intended to confirm the proposed ECMs have been installed according to manufacturers’ guidelines and that the system will perform as expected.  Contractors are required to prepare a Commissioning Report and submit it to the owner and the program administrator. It should include as-built drawings, O&M manuals for each ECM and a narrative that is appropriate for the size and complexity of the project.