A statewide program that provides commercial property owners with a unique mechanism to finance energy efficiency, renewable energy, and water-conservation improvements, was launched today by the New Energy Improvement District.
The program was dubbed as 'Commercial Property Assessed Clean Energy' or 'C-PACE.'
"Commercial buildings currently account for about 20% of Colorado's energy use," said Paul Scharfenberger, chairman of the New Energy Improvement District Board. "Colorado's commercial PACE program offers a financial tool to help spur energy efficiency and renewable energy investments in our state's building infrastructure, providing long-term utility savings, while stimulating the economy."
C-PACE is also a program that offers commercial property owners the opportunity to spread energy and water project costs over a term of up to 20 years, and pay them back through an assessment on their property tax bill, without upfront capital outlay.
According to the press release of the Colorado Energy Office in PR Newswire, the Colorado C-PACE program will be administered by the Sustainable Real Estate Solutions (SRS). The SRS will oversee an open, competitive lending model that makes it possible for a wide variety of capital providers to participate.
All the monetary necessity of the projects will be financed with private funds to allow local lenders, national banks, and PACE capital providers an opportunity to finance projects.
"C-PACE provides commercial and industrial building owners with an attractive way to finance capital intensive building modernization projects," said Brian J. McCarter, CEO of SRS, administrator for the Colorado C-PACE program. "The resulting energy savings typically outweigh the annual assessment payment, thereby enabling cash flow positive projects."
Office buildings, hotels, retail, agricultural, non-profits, industrial buildings and multi-family properties with five or more units are all eligible for the C-PACE program. Properties qualified for the program must be located in a county that opted to participate in the C-PACE. Several counties such as the Boulder County has already opted in to participate in the Colorado C-PACE program.
