Allow us to introduce you to the most exciting coupling since peanut butter and chocolate: clean energy projects + property tax assessments! Trust us on this one. One of the main hurdles to investments in energy efficiency and renewable energy is upfront costs. A new financing mechanism (known as Commercial Property Assessed Clean Energy, or "C-PACE," financing) allows businesses to get loans for building energy or water conservation improvements and pay it back through a voluntary property tax assessment. The annual utility bill savings from the improvements are greater than the annual payments, thus helping businesses reduce operating costs from day one! Plus, the tax assessment stays with property, not the property-owner. So if the building is sold, the benefits of that investment and the obligation to repay the loan pass to the new owner.
The Benefits of PACE
|1. No up-front cash required
2. Low interest rates
3. Immediate energy savings make investment
cash-flow positive from day one
4. Increased Property Value
5. Costs and savings may be shared with tenants
6. Not based on business credit
|7. Preserve cash for other needs
8. Loan remains with the property
9. Loan does not show up as debt on your balance sheet
10. Hedge against rising energy costs
11. Local economic development and job creation
12. Improved air quality
For a quick overview of C-PACE, check out our C-PACE Brochure. For detailed information or to apply to participate, visit the Utah Office of Energy Development's C-PACE website: http://energy.utah.gov/utah-c-pace/
More clean energy means more clean air! Thanks to our partnership with UCAIR, Utah Clean Energy drafted a state-wide model C-PACE program for Utah. As part of the year-long development process we assembled an Advisory Committee comprised of over 75 local government representatives, business leaders, attorneys, and financial institutions to identify best practices and get Utah's C-PACE program up and running.
In 2015, Utah Clean Energy worked with the Utah Governor's Office of Energy Development to refine guidelines for Utah's C-PACE program, thanks to support from the U.S. Department of Energy's Solar Market Pathways program.
As the administrator for Utah's C-PACE program, the Utah Governor's Office of Energy Development is now accepting applications from potential C-PACE projects, from municipalities who would like to opt-in to C-PACE, and from companies seeking to become an approved contractor. Learn more at the Office of Energy Development's C-PACE website: http://energy.utah.gov/utah-c-pace/
Utah now proudly joins the ranks of over 31 states and the District of Columbia that allow C-PACE financing. This summary of eight existing commercial PACE programs from across the U.S. demonstrates the wide range of options employed by PACE programs and provides ideas for best practices used in the development of Utah's C-PACE Model Program. This massive document is not for the casual reader, but feel free to dive in to learn about various C-PACE program options in the United States.