Commercial Property Assessed Clean Energy


What is C-PACE Financing?

Commercial property assessed clean energy (C-PACE) is a tool that can finance energy efficiency and renewable energy improvements on commercial property.

Like other project financing, C-PACE uses borrowed capital to pay for the upfront costs associated with energy efficiency or renewable energy improvements. Unlike other project financing, the borrowed capital is repaid over time via a voluntary tax assessment. The security provided by the tax assessment, a long-used and well understood mechanism, results in several compelling features, including longer term financing and transferability of the repayment obligations to the next property owner. In turn, C-PACE strengthens the business case for investment in longer payback and deeper building retrofits beyond what is possible with traditional financing.

CPACE legislation is approved in more than 20 states plus Washington DC. Additional states will soon follow.

What are the benefits?

What is eligible?


  • New Construction
  • Renovation + Re-development
  • Retroactive Financing
  • Building Expansion
  • Tenant+Capital Improvements
  • Solar + Renewables 
  • LED Lighting
  • Seismic Strengthening


  • Industrial
  • Hospitality
  • Multi-Family
  • Office Buildings
  • Retail Buildings
  • Senior Housing
  • Medical + Special Purpose
  • Schools


Most Commercial Buildings Eligible

Available for most commercial properties including multi-family. Does not work for residential condos or government owned properties.

PACE Eligible Upgrades:

Funds must be earmarked for energy savings measures or associated measures and soft costs. In some areas, water conservation and seismic or storm resiliency may also qualify.

Loan to Value (LTV)

C-PACE programs allow for funding up to 20% of the as-stabilized value of the building.

Senior Lender Comfort

Most Senior Lenders will want to ensure C-PACE funding preserves debt-service coverage ratios and does not trigger asset classification as "HVCRE" (<15% developer equity).

Note: C-PACE does not work well with pre-existing CMBS, SBA, or Fannie Mae loans. CMS Commercial Finance's team works closely with senior lenders to ensure comfort around PACE funding commitment, disbursement milestones, and risk mitigation in a downside scenario.

Looking for energy financING?

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