Displayed below is a list of Frequently Asked Questions (FAQs). Click on the “>” icon associated with each question to view the answer.
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.
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.
- 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.
- Combined heat and power (CHP) systems
- Fuel cells
- Geothermal systems
- Hydroelectric systems
- Small wind systems
- Solar PV
- Solar thermal.
- Renewable energy.
- 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.
After a competitive bidding process, the RIIB selected Sustainable Real Estate Solutions, Inc. (SRS) to be the RI C-PACE program administrator.
While many building owners need to upgrade their buildings, too often financial constraints get in the way. C-PACE financing solves the financial issues by providing: 100 percent financing for a term consistent with the useful life of the improvements, generally up to 25 years. The benefits include:
- Competitive, fixed interest rates
- Zero out of pocket expense
- Qualification for financing is based on the building’s financial health, and, as a result, the owner is not required to sign a personal guarantee
- Decreased utility expenses from reduced electricity, fuel and water usage produce cash flow positive projects
- C-PACE assessment payment obligation transfers to the new owner when the property is sold
Given the extraordinary benefits of C-PACE financing, owners and contractors can expand any energy related plan to include renewable energy equipment, water conservation measures, asbestos abatement and other related environmental health and safety improvements.
Visit the Participating Municipalities page for a current list of municipalities participating in the C-PACE program. C-PACE may only accept applications from property owners located in counties that have joined the program by passing a simple opt-in resolution. Feel free to email info@RI-CPACE.com if you have questions about getting your municipality to join C-PACE.
No. C-PACE uses private capital to fund every project. Visit the Capital Providers page of this website for a current list of capital providers participating in the C-PACE program. The cost to administer the program is paid by program participants through a Program Administration fee that is included in the total cost of each project.
Building owners are encouraged to consult their accountants on this matter.
There has been no specific ruling by the Financial Accounting Standards Board on this issue.
Upon closing of C-PACE financing, the program administrator instructs the municipal tax assessor to record an assessment (lien) on the municipality’s land records
Yes. Owners who choose not to participate remain unaffected.
Qualifying for C-PACE financing is based on the property, and not the owner. The C-PACE program administrator will look at:
- The property’s estimated market value (assessed or appraised)
- The amount of the owner’s equity in the property
- The owner’s recent mortgage and property tax payment history
- The dollar value of the proposed energy and/or water-saving improvements.
C-PACE projects typically range from $200,000 to more than $1 million. Constraints on the amount are driven by the financial health of the building and include:
- Building financials
- Loan-to-value percentage (<80 percent LTV is preferred)
- Other considerations of the mortgage holder.
To ensure the best possible terms, including interest rate and other fees, the building owner can review term sheets from multiple private capital providers, facilitated by the program administrator, to select the best fit.
Repayment periods can be 10, 15, 20, or 25 years, depending on the owner’s preference, and are limited by the weighted average effective useful life (EUL) of the financed improvements.
Property owners are encouraged to pursue available federal investment tax credits (ITC), utility rebates, and all other available incentives. All or a portion of total incentives may be subtracted from the amount financed under the C-PACE program.
Each C-PACE participating private capital provider sets its own terms, including pre-payment, in its financing agreement with the building owner. It is common for C-PACE capital providers to include a pre-payment fee schedule.
No there is no fee to apply for C-PACE financing.