Key facts
- C-PACE financing allows commercial developers to fund energy-efficiency and resilience work without altering the primary capital stack.
- The financing tool can help make deals viable when traditional lending falls short.
- C-PACE is applicable to new construction, renovations, and disaster rebuilding projects.
- The program is a public-private partnership that incentivizes capital for energy-efficient improvements.
- C-PACE financing does not rely on government guarantees or taxpayer money.
Sal Tarsia, Managing Partner at CastleGreen Finance, explained the intricacies of Commercial Property Assessed Clean Energy (C-PACE) financing in a recent appearance on the Global Investors Podcast with host Charles Carillo. Tarsia, who has over 30 years of experience in commercial real estate financing, detailed how C-PACE serves as a crucial tool for developers seeking to fund energy-efficiency and resilience upgrades.
Tarsia described C-PACE as a public-private partnership designed to encourage investment in energy-efficient projects, ranging from solar panel installations and HVAC replacements to integral components of new construction. He highlighted its compatibility with historic tax credits for the renovation of older and historic buildings, focusing on the energy efficiency aspects of rehabilitation.