Garfield County opts into statewide C-PACE
On Nov. 7, 2016, the Garfield County Commissioners voted 2-1 to opt in to Colorado’s Commercial Property-Assessed Clean Energy Financing program,
Garfield joins eight other counties to make PACE financing available for commercial property owners.
Active C-PACE counties
The commissioners acted in response to a request from Garfield Clean Energy, CLEER, and energy efficiency and renewable energy businesses to opt in to the statewide program, which was launched in December 2015.
C-PACE will benefit commercial property owners by offering affordable financing for energy and water efficiency upgrades and for renewable energy systems. Bringing C-PACE to the county will also boost economic activity by driving new business to contractors and suppliers.
CLEER is working with C-PACE officials to organize a local workshop to train contractors on use of the financing tool. The workshop will likely be held in early 2017.
C-PACE also opens up a new lending opportunity for banks by using an open source funding model that allows any qualified capital provider to fund eligible projects.
Commercial and industrial properties may borrow from C-PACE, as may farms, ranches and multi-family residential properties with five or more units. Facilities owned by nonprofits, such as hospitals, clinics and resource centers, are also eligible.
Borrowers carry out projects, which must meet specific requirements to be eligible for financing. The debt is repaid as part of that property’s annual property tax bill over a term of up to 20 years.
Efficiency and renewable energy projects are designed so that utility cost savings will equal or exceed the annual debt payment. An independent third party must confirm the expected energy or water savings and the related cost savings, providing added assurance to property owners.
Garfield County will collect a servicing fee of 1 percent of the annual payment amount to cover its costs for processing the payment, and the C-PACE program collects a one time, 2.5 percent fee to cover its own operating costs.
Colorado's New Energy Improvement District launches statewide commercial PACE program
C-PACE offers property owners a new tool to finance energy efficiency, water conservation, renewable energy projects
Colorado Energy Office news release
Dec. 1, 2015
Today the New Energy Improvement District launches a statewide commercial Property Assessed Clean Energy (C-PACE) program - providing commercial property owners a unique mechanism to finance energy efficiency, renewable energy, and water-conservation improvements.
The C-PACE program offers commercial property owners the opportunity to spread energy and water project costs over a term of up to 20 years, and repay them through an assessment on their property tax bill, with no upfront capital outlay.
"Commercial buildings currently account for about 20% of Colorado's energy use. 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," said Paul Scharfenberger, chairman of the New Energy Improvement District board.
The program provides financing for a variety of improvements, including new heating or cooling systems, lighting, water pumps, insulation, solar panels and other renewable energy projects.
Typical long term C-PACE financing covers 100% of a project's cost and is repaid, for up to 20 years, in semi-annual payments that are structured as a regular line item on the property tax bill. When a property is sold thePACE assessment stays with the property and transfers to the new owner who, in turn, enjoys the ongoing utility cost-savings associated with the project.
Sustainable Real Estate Solutions (SRS) was competitively selected as the Colorado C-PACE administrator and will oversee an open, competitive lending model that makes it possible for a wide variety of capital providers to participate. All projects will be financed entirely with private funds, allowing local lenders, national banks, andPACE 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. The resulting energy savings typically outweigh the annual assessment payment thereby enabling cash flow positive projects," said Brian J. McCarter, CEO of SRS, administrator for the Colorado C-PACE program.
Eligible properties include office buildings, hotels, retail, agricultural, non-profits, industrial buildings and multi-family properties - with five or more units. Projects must be located in counties that have opted to participate in the program. Boulder County has opted-in, and several other counties around the state already have indicated that they plan to participate.
For more information or to apply for C-PACE financing, visit the Colorado C-PACE website at www.COPACE.com.
CPACE Program Overview
presented by Tracy Phillips, Director of the Colorado C-PACE Program, June 30, 2016
EXAMPLE CASE STUDIES
with full financial breakdowns on cash flow, list of upgrades with costs and specs, paybacks and energy savings.
21,600 sq ft
$177,216 borrowed for LED lighting upgrade and 50 kW solar PV
Large office building
112,000 sq ft
$2 million borrowed for extensive mechanical system upgrades and windows
Alpine Bank offers discounts on home equity loans, lines of credit and vehicle loans for qualifying energy efficiency measures.
More info here.
Contact an Energy Coach
Maisa Metcalf (se habla español)
(970) 704-9200 ext. 1101
(970) 704-9200 ext. 1103