Salt Lake City has joined Provo as a member of the C-PACE low-cost financing program for energy efficiency, renewable energy, electric vehicle and water conservation projects. The city’s membership will help advance energy improvements in commercial, industrial and qualifying residential buildings, a release from the Governor’s Office of Energy Development (OED) said.
C-PACE is a way to finance energy efficiency, renewable energy, water conservation and other building improvement projects on commercial real property. C-PACE financing started in the United States in 2009 and there are currently 46 active C-PACE programs in operation in the U.S. As of December, 988 commercial C-PACE projects have been completed nationwide totaling $322 million financed.
C-PACE offers many benefits not realized with traditional forms of construction lending, according to a release from the OED. For example, C-PACE allows commercial building owners to finance 100 percent of the project costs (including soft costs) with no money down and fixed interest rates over the term of the assessment, up to 30 years.
The financing is secured by a voluntary assessment placed on the improved real property. This assessment may transfer to any subsequent owners if the property is sold, and the financing is treated like a property tax so it can be treated as off-balance sheet financing.
“C-PACE is a game-changer that helps reduce pollution and provides long-term financial savings,” said Jackie Biskupski, mayor of Salt Lake City. “We are thrilled to offer this new tool for the private sector to finance our shared clean energy future. This is a win-win for economic development and a cleaner environment.”
Salt Lake City is the second municipality, along with Provo, to opt-in to the statewide Utah C-PACE District since its launch in May. OED and its partner SRS administers Utah’s program, including assisting properties with the project evaluation and financing process.
“As our population continues to grow, building efficiency will be key to improving air quality along the Wasatch Front,” said Laura Nelson, the governor’s energy advisor. “We’re pleased that Salt Lake City is making strides to meet this challenge with C-PACE, which will allow them to realize the benefits of economic development while advancing environmental goals.”