Commercial Property Assessed Clean Energy (C-PACE) is used for new ground-up construction financing in nearly every jurisdiction in the country. It is a common misconception that it will cost the developer more money to construct a building that will qualify for financing through C-PACE. In fact, this program is used for many construction elements that would already exist in a developer’s plans and specification.
Approximately 20% to 40% of both the hard and soft costs associated with a ground-up construction budget generally qualify for C-PACE financing, depending on the jurisdiction and individual budgets. The significant savings in financing costs through the use of C-PACE can either increase investor returns or reallocated to improve building quality and marketability.