PACE Equity closes first Philly deal with Bromley Loom House

PACE Equity, the Philadelphia Energy Authority and the owners of 2315-2325 N. Front Street closed the 14th C-PACE deal in Philadelphia with $997,706 to finance energy efficiency and water conservation measures for a newly constructed multifamily/mixed use property in East Kensington.  Fact sheets for this project and all PA C-PACE projects can be found here

The property is known as the Bromley Loom House. It is a 63-unit multifamily property with two commercial units. Greg Ambrosi, CFO of Ampere Capital Group, the developer/owner of the property stated, “while we used C-PACE funding as a stop gap for supply chain overages and a bridge loan our first time using the product, I definitely see the value of utilizing the product moving forward from the beginning of construction. It is priced better than almost all current construction lending, and can really shore up the capital stack; decreasing equity needs while lowering overall cost of capital, and also improving ratios that banks value. Add that to the fact that Lisa’s team from the city and Aysha’s team from PACE-Equity were very responsive, this was a very smooth process.”

“We applaud the team at Ampere Capital Group for choosing long-term, non-recourse PACE financing for the Bromley Loom House,” stated Stephen Arrivello, PACE Equity’s Philadelphia Managing Director. PACE Equity helps complete the capital stack with low-cost capital by funding improvements that contribute to lower energy costs and lower carbon.”

PEA is pleased to welcome PACE Equity to the growing group of C-PACE capital providers having closed projects in Philadelphia (Nuveen Green Capital, Counterpointe SRE, CCG PACE, Enhanced Capital, and Twain Financial Partners). 

$158 million of private capital utilizing the C-PACE program has been invested in energy efficiency, water conservation and solar energy during the first three years of the program’s inception in Philadelphia. C-PACE may also be used for resiliency and indoor air quality improvements.

This project is notable because of the speed it was approved and closed. It took just seven weeks from submission of the pre-application to recording the C-PACE assessment. 

Interested in learning more about C-PACE? Contact us at and/or attend our C-PACE Open Meetings which take place on the last Thursday of each month from 2:00-3:00PM. See all C-PACE Philadelphia events here.

The Inflation Reduction Act (IRA) and Commercial Properties

The Inflation Reduction Act (IRA) of 2022 was signed into law by President Biden on August 16, 2022. This truly historic law includes $369 billion of federal climate-related funding. It is designed to reduce the nation’s carbon footprint by 40 percent of 2005 levels by 2030. 

There are many things we know about the IRA and other implementation details that are being developed. Multiple federal and state agencies have yet to issue regulations, guidance, or distribute grants to determine how to move these historic amounts of dollars. Much of the IRA funding is in the form of tax incentives (credits, rebates, and direct pay) which are essentially guaranteed and will not run out based on demand.

The Philadelphia Energy Authority and the Philadelphia Office of Sustainability are working together to ensure that Philadelphia is best positioned to maximize opportunities from the IRA. We believe it is reasonable to target $5 billion in funding for Philadelphia in the form of formula and competitive grants, rebates and tax credits (institutional and consumer). This level of investment will generate approximately 50,000 clean energy jobs. Of this $5 billion, we anticipate that the majority of this funding will come to Philadelphia in the form of tax credits and payments. 

Four Primary Provisions of IRA Relevant to Commercial Property Owners

  1. 179D tax deduction for energy efficiency improvements to existing and new commercial buildings
  2. 45L tax credit  for energy efficiency in residential buildings – multifamily and single family
  3. Section 48 Investment Tax Credit (ITC) for renewable energy including solar, combined heat and power (CHP), and energy storage
  4. 30c tax credit for installation Electrical Vehicle (EV) charging stations (only applies to buildings in low income and rural areas)

They are broken out below by Energy Efficiency, Renewables/Solar and EV charging

Energy Efficiency

The IRA contains two major tax incentives for commercial property owners to reduce energy use in their buildings, for both new buildings and retrofits. Both incentives -179D (a tax deduction) and 45L (a tax credit) – are existing programs that were set to expire in 2021. The IRA extends these  programs for 10 years and increases the dollar amount an owner can earn.

The 179D incentive provides owners and long-term lessees with a dollar amount per square foot if their commercial or residential buildings meet a certain efficiency standard. Owners of a new construction or retrofitted building can earn up to $5 per square foot, depending on its energy efficiency relative to the ASHRAE standard — a benchmark validated by the American Society of Heating, Refrigerating and Air-Conditioning Engineers that is updated every few years and varies by building type. See White House Guidebook, page 115 for details. Eligible improvements include: interior lighting, heating, cooling, ventilation, hot water, and building envelope.

The 179D deduction is a stepped benefit, beginning at $2.50 per square foot for a building with a 25 percent reduction in energy usage relative to the ASHRAE standard. Every percentage point thereafter adds 10 cents until the maximum of $5 for 50 percent or more energy savings. These numbers apply only to those owners who pay workers a prevailing wage and registered apprenticeship requirements. Those who don’t pay prevailing wage are eligible for a maximum of $1 per square foot. 

The IRS has not yet published guidelines for the 179D deductions thus many details are still unclear. To qualify, owners will need a third party to certify the change in energy efficiency. 

Design teams, which do pay federal taxes, can apply for this tax credit on behalf of government agencies and nonprofits enabling a reduction in overall project costs. In addition, owners can earn 179D benefits every three to four years, as long as a new capital event has led to additional reductions in the building’s carbon footprint. 

The 45L tax credit is directed at residential property owners who can earn up to $5,000 per unit (single-family home or apartment) if they meet the criteria. Beginning in 2023, rentals that meet the Energy Star standard earn $500 per unit, while those that meet the zero energy ready homes (ZER) standard earn $5,000 per unit. Multifamily units must use prevailing wage labor to be eligible for the maximum incentive (otherwise their incentive is capped at $1,000 per unit).

Renewable Energy and Storage

The IRA extends the investment tax credit (Clean Electricity Investment Tax Credit (Sec. 13702)). There is a 10-year extension of 30% of the cost of installed equipment to be tax exempt, falling to 26% in 2033, and 22% in 2034. That 30% credit also applies to energy storage, meaning retrofits of batteries to solar arrays can benefit. The ITC is eligible for an additional 10% – 20% boost for projects in certain low-income communities and buildings. The ITC includes a 30% standalone credit for energy storage. Interconnection costs will be included for projects smaller than 5 MWac. 

Very significantly, government and nonprofit properties are now eligible for direct pay. This means that building owners will be paid the equivalent of the tax credit to taxable entities. Previously, nonprofits had to enter into more complex financing arrangements with 3rd parties, making the projects less economical. 

The IRA includes significant “adders” to raise the ITC beyond 30%. Projects featuring a minimum amount of domestically produced content are eligible for another 10% incentive. To reach that target, all steel and iron must be U.S. made and at least 40% of manufactured goods – solar panels, inverters, electrical gear – must qualify too, with certain percentages to rise in the future. Historically, Made-in-the-USA goods must feature at least 55% domestic content but the bill lists exceptions, permitting imports of materials not made to satisfactory quality or in sufficient numbers within the U.S. Domestic components which would raise project costs by more than a quarter can also be imported.

An additional 10% incentive is available to projects in designated “energy communities” – brownfield sites and former fossil fuel production areas. In the latter case, county subdivisions – or “census tracts” – and their immediate neighbors, are eligible as long as there has been coal, oil, or natural gas extraction since 2000.

EV Charging

30c: Property owners and investors interested in installing electric vehicle charging stations in their parking lots (or garages) in low-income or rural areas are now able to take advantage of the extended and modified Alternative Fuel Vehicle Refueling Property Credit. From 2023 through 2032, a 30% tax credit will be applied to this charging infrastructure up to $100,000 per item of property.


Over the coming months the Treasury Department will be issuing guidelines providing more specificity than what is known today.

The IRA is truly a once-in-a-generation opportunity for the U.S. to decarbonize. The Philadelphia Energy Authority is committed to sharing information and resources to help your organization take advantage of these opportunities. PEA and our green bank affiliate have many existing programs to assist with financing energy efficiency and solar as well as obtain a quote for solar on your property. We also run workforce training programs leading young people to jobs in the solar and building retrofit industries. 

Please contact us at to learn more. 


Below are resources for you to explore about the IRA. Feel free to send us additional resources to add to this list at

  1. The White House has an IRA Guidebook and a table with updates regarding status of the major provisions. 

Guidebook website 

Guidebook PDF

  1. Real Estate Roundtable fact sheet updated January 5, 2023
  2. ULI webinar September 2022
  3. Commercial Observer IRA and Commercial Property September 2022
  4.  IRA and Commercial Real Estate September 2022
  5. EDP Renewables Understanding the IRA
  6. Trane Resource Center
  7. Genie Solar Energy IRA Implications Solar November 2022
  8. Marcum LLP Renewable Energy Incentives November 2022

First Multifamily C-PACE Deal Closes in PA

Riverwards Group secures $17.9MM in energy efficiency financing for 220 apartments through C-PACE program expansion

The Philadelphia Energy Authority and Nuveen Green Capital announced the closing of $17.9MM for a 220-unit multifamily property in the Port Richmond neighborhood of Philadelphia on East Somerset and Tulip Streets.  This project is the first in Pennsylvania to take advantage of expanded eligibility for multifamily properties and it is the 12th project in Philadelphia, bringing total C-PACE investments to $117MM.

Commercial Property Assessed Clean Energy (C-PACE) financing allows for investments in energy efficiency, water conservation, renewable energy, and now IAQ and resiliency, that are paid back over time through special property assessments. 

The Riverwards Group development, known as Somerset Station, is set to open in 2024. “We are grateful that this development is the first multifamily project in Pennsylvania to benefit from the newly expanded C-PACE program,” said Mo Rushdy, Managing Partner, Riverwards Group.  It is a transformative project that brings an unprecedented large-scale development to North of Lehigh Avenue, in an area that has been neglected development-wise. This development would not have happened without the use of C-PACE and Community Revitalization Act funding. Nuveen Green Capital and Citizens Bank worked together to make this project happen.”

Shelah Wallace, Director of Origins at Nuveen Green Capital stated “we are thrilled to be able to help Riverwards reduce their equity requirement by utilizing our C-PACE product. We are also very proud to have partnered with Citizens Bank as they recognized the benefits of having C-PACE in the capital stack.” 

Senate Bill 635 expanded eligibility for C-PACE financing to include multifamily commercial buildings, indoor air quality and building resiliency improvements. The bill was signed by Governor Wolf in July 2022 and took effect in September 2022. Act 43 of 2022 expands on Act 30 of 2018, which first enabled C-PACE financing in Pennsylvania for commercial buildings. Sponsored by Senator Yudichak, the Act extends eligibility to multifamily commercial buildings of 5 or more units, as well as indoor air quality and building resiliency improvements. Representative Heffley sponsored the House companion bill, HB 1760.

“We are grateful to Senator Yudichak and Representative Heffley for their sponsorship of expansion,” said Emily Schapira, President & CEO of the Philadelphia Energy Authority, Philadelphia’s C-PACE Administrator. “This project is evidence of the importance of the expansion.”

Largest PA C-PACE deal closed; Philly total @$100MM

Nuveen Green Capital Provides $30 Million in Financing Through the Philadelphia
C-PACE Program for Freezpak Logistics

Philadelphia-area based BG Capital uses C-PACE to complete capital stack for new construction of industrial cold storage facility

Nuveen Green Capital and the Philadelphia Energy Authority announced the closing of $30.08 million in Commercial Property Assessed Clean Energy (C-PACE) financing for a cold storage facility at 2201 E. Allegheny Avenue in the Port Richmond neighborhood of Philadelphia. This is the largest C-PACE deal to-date in Pennsylvania.

This brings the total amount of C-PACE dollars invested by private sector lenders to $100MM in Philadelphia, a true landmark in the program which became active in late 2019, just before the pandemic-induced recession.

C-PACE financing is being used for extensive energy efficiency improvements, making the building 30% more efficient than required by Philadelphia’s building energy code. Financed measures include energy efficient walls and glass, interior and exterior LED lighting, variable volume air handlers, freezer evaporators, domestic water heater, and exhaust fans. C-PACE financing is projected to contribute to the annual reduction of 1,661,573 pounds of CO2-e.  

According to BG Capital’s Managing Partner Joe Byrne, “in these challenging times, alternative debt solutions like C-PACE have now become critical in rounding out the capital stack within larger scale projects. We are extremely fortunate to work with the team at Nuveen Green Capital on getting this deal over the finish line and working with a company whose product has an emphasis on sustainability within our industry.”

Shelah Wallace, Director, Originations at Nuveen Green Capital stated that “it was a pleasure to work closely with BG Capital and Freezpak, Ocean First Bank, and the Philadelphia Energy Authority on getting us to the closing table at a time when interest rates continuously fluctuated and parties risked losing rate locks. We look forward to financing more energy efficient projects together in the future.”

“This project is a great example of how clean energy financing enables job creation and creates economic development. We use energy as a tool for positive local impact, and this project exemplifies that,” said Matt Stern, Senior Director of Commercial Programs at the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program. “In addition to the construction jobs being created by this facility, Freezpak expects to generate over 60 permanent jobs at the facility.”

Details on this and all Philadelphia C-PACE deals can be found here.

Interested in learning more about C-PACE? Contact us at and/or attend our C-PACE Open Meetings

C-PACE Year in Review Roundtable

Join the Philadelphia Energy Authority (PEA)’s Executive Director, Emily Schapira, and Interim C-PACE Program Administrator, Lisa Shulock, for an open discussion about C-PACE in Philadelphia. We will share some learnings from Philadelphia C-PACE’s first year. We also are looking for healthy dialogue about how to help grow the pipeline of C-PACE projects and ensure that the program is reaching its full potential. Come to talk or just to listen. Registration is required. Click here to register.



Energy Efficiency and COVID-19 Safety Measures: Can You Have Both?

Philadelphia Energy Authority – November 10, 2020

By Lennal Kalawa and Lisa Shulock

Philadelphia Energy Authority held a webinar about energy efficiency and COVID-19 mitigation in commercial buildings. The session covered operational adjustments and capital improvements to protect occupants’ health and manage energy use in commercial buildings.

Lisa Shulock from the Philadelphia Energy Authority moderated the panel and she was joined by Dan Kerr, President of Burns Mechanical, a high-performance building service company, Marcelo Rouco, Chairman, Founder and Chief Executive Officer of Ecosave, a supplier of energy efficiency services, and Sam Elbarouki, Senior Vice President, C-PACE Business Development,  from Dividend Finance, a C-PACE capital provider.

Shulock kicked off the discussion and provided a high-level description of C-PACE, a financing tool that provides long-term funding for energy efficiency, renewable energy, and water conservation projects. C-PACE financing may be of interest to commercial building owners who want to upgrade their energy systems to achieve high energy performance while also making their buildings more “COVID-safe.”

Kerr shared some tips as to what he has learned as an engineer during the COVID pandemic. He stated that the most important health and safety precaution is for individuals to practice social distancing, wear masks, and practice other personal actions to protect themselves and others. Building operators can also help to keep their occupants safe, but there isn’t one technology or gadget that can be purchased or turned on. Building operators should first make sure their buildings are operating optimally. Kerr noted that approximately 80% of commercial buildings are not operating the way they should. The pandemic is showing that owners who have deferred maintenance have more work to do to get their buildings to safe operating levels. It is now generally accepted that both ventilation and filtration approaches on their own or in combination can reduce the risk of airborne transmission of the novel Corona virus. Achieving the ASHRAE ventilation standard (62.1-2019), maintaining relative humidity between 40-60% and upgrading when possible to MERV 13 rated filters or higher are probably the most important areas to focus on related to HVAC systems operation.  Kerr said that Burns has also installed disinfecting UVGI spectrum lights for several of their clients in the HVAC equipment because cooling and heating coils and other equipment inside air handling equipment can become contaminated.

Marcelo Rouco from Ecosave spoke about the reasons you would want to consider implementing energy-saving measures at the same time you are addressing COVID mitigation. He stated that COVID mitigation often increases energy consumption, however, by looking at other energy reduction measures in the building, building owners can achieve the goal of saving energy as well as having COVID mitigation measures in place.

Some of the benefits of a combined approach include:

  • Maintaining building health standard while reducing energy consumption
  • There is a cost reduction when COVID mitigation and energy efficiency are combined
  • COVID mitigation can be funded by C-PACE as long as it is combined with other energy-saving methods.

Sam Elbarouki from Dividend finance, a C-PACE capital provider explained how they help finance building upgrades and new construction. C-PACE can provide financing for up to 100% of the cost of energy efficiency upgrades and there is a lower cost of capital than many alternatives. C-PACE is able to integrate with other economic development initiatives such as Opportunity Zones, Tax Increment Financing (TIFs), Historic Tax Credits (HTCs), and utility incentives.

Capital providers can finance roof replacement, windows and doors, lighting upgrades, HVAC systems, energy storage, solar systems and more. The minimum project size is $100,000 in Philadelphia and $10,000 in other Pennsylvania counties with a repayment term of up to 30 years with a fixed interest rate, generally in the range of 5-7%. There is also the option of retroactively using C-PACE financing with a two-year look back.

Shulock wrapped up the webinar by discussing the first Pennsylvania C-PACE projects. Information on the projects can be found here.

To watch the recording of the webinar, click here. The slides can also be found on the Philadelphia C-PACE program resources page in the Philadelphia C-PACE webinars section.

Additional reading and resources: