What Architects and Engineers Need to Know About the New Garden State C-PACE Program 

C-PACE is a financing mechanism that allows commercial, industrial, and non-profit property owners to fund energy efficiency, renewable energy, and resiliency improvements. Financing is repaid through a special assessment on the property, which spreads costs over long periods (up to 30 years).

• For existing properties, this structure means projects can be cash-flow positive from day one without traditional upfront capital constraints.
• For commercial real estate developers, C-PACE can provide up to 35% of the capital stack, at low market rates, as long-term, non-recourse, off-balance-sheet financing for energy- and resiliency-related elements such as the building envelope, wastewater and stormwater systems, solar and geothermal.

PACE is a win-win for existing property owners, commercial real estate developers, and investors. C-PACE Assessments are considered a new asset class that is growing rapidly and that provides stable, low-risk returns.

Key Features of the Garden State C-PACE Program:

• The program is administered by the New Jersey Economic Development Authority (NJEDA).
• To submit a project, existing buildings must have an ASHRAE Level I or Level II Audit or comparable analysis, professionally planned upgrades approved by a technical reviewer, and committed financing.
• Technical evaluation for new construction and gut rehabs uses the Whole-Building Model Approach. Plans must be approved by a technical reviewer, and the developer must also secure financing before submitting a project for NJEDA approval.
• We can assist you with this.

Why Your Clients Should Consider C-PACE for Their Upgrade or New Construction

All existing buildings require ongoing re-evaluation of their energy usage, GHG emissions, and resiliency needs—and most could use significant improvement. Renewables and energy efficiency aren’t just good for the environment, they’re also good for the owner’s bottom line. Financing a significant improvement to your clients’ property through C-PACE is a smart move, both for the property owner and for the investor. The owner saves money, avoids using their own capital, and gives someone else a stake in their success. C-PACE investors, typically insurance companies and pension funds, benefit from long-term stable returns. C-PACE is available at low market rates, does not increase the owner’s debt, and serves as a long-term investment in their asset value. It can also give their property a competitive edge in the marketplace.

If a client has completed an eligible project within three years prior to submission, they may qualify for refinancing. We can assist you with this.

Eligibility:

• Available for commercial, industrial, multi-family (5+ units), agricultural, and nonprofit/institutional properties such as hospitals, churches, and schools.
• Eligible improvements include energy efficiency upgrades, renewable energy installations (solar, wind, etc.), water conservation and other resiliency projects.
• Financing is available to properties and owners that meet eligibility and underwriting requirements.

Financing Terms:

• Financing is repaid through a special assessment added to the property tax bill, typically over 10 to 30 years.
• The amount financed can cover up to 100% of the cost of eligible projects.
• Long-term financing offers lower interest rates compared to traditional loans, leases, or PPAs, which helps reduce upfront financial barriers for property owners.

We can assist you with all aspects of planning and financing your clients’ projects.