C-PACE is an attractive tool for developers of new construction and gut rehab projects. Since C-PACE provides a low-cost, long-term source of capital, many developers look to add C-PACE to their capital stacks to displace more expensive forms of capital such as mezzanine debt and equity. Eligible costs include all energy efficiency building components and equipment, solar energy, IAQ and resiliency improvements. These costs are typically between 20-30% of the total project cost.

How It Works

Developers can use C-PACE in a variety of contexts, including on new construction, gut rehab and even to refinance projects.

  1. C-PACE for New Construction Projects

    ENERGY: New construction projects that exceed the minimum code requirements in Philadelphia (IECC-2018) are eligible for C-PACE financing. One hundred percent (100%) of the cost of the eligible energy and water measures, as well as some soft costs, can be financed with C-PACE.

    The ECM Survey will determine whether the building exceeds minimum code requirements.

    IAQ: Projects must meet design performance goals as set forth in the Program Guidelines.

    Resiliency: Projects include stormwater management, energy resilience and infrastructure “hardening.”

    See the Program Guidelines on the Program Resources page or contact PEA for more information.

  2. C-PACE for Gut Rehabs

    Developers can use C-PACE for a substantial (gut) renovation or adaptive reuse of a property. In this case, the baseline for the purposes of establishing energy or water usage may be set at the minimum code level for replacement or addition of equipment. Again, 100% of the C-PACE-eligible measures and soft costs may be included in the financing.

  3. Retroactive Financing

    Developers and Property Owners can refinance with C-PACE within 730 days after installation or construction. For refinancing of multifamily properties, IAQ and resiliency projects, project completion must be after September 7, 2022.  Retroactive Projects must satisfy the same requirements as other C-PACE projects.

Have questions?

Visit the FAQs page or contact PEA to learn more about the C-PACE process.

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Related Resources

What is C-PACE?

C-PACE is a financing structure that allows commercial property owners to borrow money for energy and water efficiency improvements and renewable energy installations via a special assessment similar to a property tax assessment.

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Ready to Apply?

Complete the form on application page or contact us for more information.

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