Hey Small Business Owners—Is a Clunky, Old HVAC Unit or a Leaky Roof Keeping You Up at Night?
Managing a small business is challenging enough without the added stress of rising energy bills and outdated building systems. If you're grappling with the high costs of necessary upgrades, there's a financing solution you might not have considered: Commercial Property Assessed Clean Energy (C-PACE).
What Is C-PACE?
C-PACE is an innovative financing mechanism that enables commercial property owners to fund energy efficiency, renewable energy, and water conservation projects. Repayment is made through a voluntary assessment on your property tax bill, often over terms extending up to 20 years. This approach allows for immediate improvements without the burden of upfront costs. epa.gov
According to the U.S. Department of Energy, C-PACE financing can cover 100% of project costs, resulting in lower annual payments and improved cash flow. betterbuildingssolutioncenter.energy.gov
Benefits of C-PACE for Small Business Owners
- No Upfront Costs: Finance the entire cost of eligible improvements. EPA
- Long-Term Repayment: Spread payments over extended terms, aligning with the useful life of the improvements.
- Transferable Upon Sale: If you sell your property, the repayment obligation can transfer to the new owner. cbbank.com
- Improved Property Value: Energy-efficient upgrades can enhance your property's marketability and value.
- Positive Cash Flow: Energy savings often exceed the cost of repayments, improving your bottom line.
Real-World Impact
In Montgomery County, Texas, the introduction of a C-PACE program has enabled property owners to pursue significant energy-efficient upgrades. Projects have included medical facilities and retail centers, demonstrating the program's versatility across various property types. Houston Chronicle
Nationally, C-PACE programs have facilitated over $9 billion in financing for clean energy and efficiency projects across 25 states, underscoring its growing role in sustainable commercial development. RMI.org
Eligible Improvements
C-PACE financing can be used for a wide range of projects, including:
- High-efficiency HVAC systems
- Roofing and insulation upgrades
- Solar panel installations
- Energy-efficient lighting
- Water conservation measures Houston Chronicle
- Seismic and storm resilience improvements EPA
Is C-PACE Available in Your Area?
C-PACE programs are active in numerous states and municipalities. To determine if your property is eligible, consult the U.S. Department of Energy’s C-PACE resources or your local government's energy office. naseo.org
Final Thoughts
C-PACE offers a practical solution for small business owners seeking to enhance their properties' energy efficiency without the strain of upfront costs. By leveraging this financing option, you can invest in your business's infrastructure, reduce operating expenses, and contribute to a more sustainable future.
Stay tuned to FortiFi for more information on how we can assist you with C-PACE financing options in the near future.
