The City of Alexandria Commercial Property Assessed Clean Energy (C-PACE) Program is an innovative financing program enabling owners of commercial, multifamily (5+ units) and industrial properties to obtain low-cost, long-term financing for eligible clean energy, stormwater management, and resiliency improvements. Clean energy improvements can include energy efficiency, renewable energy, electrification, water efficiency, and electric vehicle charging infrastructure projects and technologies. Thirty-three states and the District of Columbia currently allow C-PACE financing programs; Alexandria’s C-PACE program is one of six currently active in Virginia. The C-PACE financing program is an action item identified in Alexandria’s Environmental Action Plan 2040 to achieve the City’s greenhouse gas emission reduction and climate resiliency targets and goals.
For existing buildings, eligible improvements financed using C-PACE can be completed with minimal up-front, out-of-pocket costs to property owners up to 100% of improvement costs with a repayment period not exceeding 30 years. C-PACE financing is also available for eligible improvements for new building construction or adaptive reuse projects not to exceed 20% of the total construction cost provided the building is designed to exceed baseline energy performance standards.
Typically, improvements financed through C-PACE result in energy cost savings that exceed the costs of repayment under C-PACE, often creating positive cash flow for owners. Additional benefits of C-PACE may include reducing other operating costs, increasing property value, improving building sustainability and resiliency, and reducing greenhouse gas emissions. C-PACE financing is tied to properties, not owners, which means an owner is not required to sign a personal guarantee and the C-PACE assessment can transfer to a new owner upon sale.
The City of Alexandria is not involved in the lending, guaranteeing or collecting of any C-PACE loan funds. However, the City of Alexandria does facilitate the levy of a lien on participating properties. The program is subject to the City of Alexandria Municipal Code (§7-7-1) and is administered by the non-profit Virginia PACE Authority (VPA) on behalf of the City of Alexandria. More information on the program can be found on the VPA website.
Questions? Let Us Know!
- Bill Eger, Energy Manager, Office of Energy Management, firstname.lastname@example.org