Commercial Property Assessed Clean Energy (C-PACE) is a private, affordable, long-term financing vehicle funded nationwide by billions of dollars in ethical investments, and enabled through a public-private partnership enacted by state or local municipality law. C-PACE is a smart and cost-efficient way to increase commercial property values and make buildings more energy-efficient and profitable in both the short and the long-term.
C-PACE financing is an off-balance sheet form of financing commercial property, not leverage. It doesn’t appear on the balance sheet and is shown as an operating expense the same way property taxes and insurance are accounted. Because PACE is a targeted fund it replaces a portion of the debt on the proforma for all hard and soft costs associated with PACE-qualified improvements and can increase the return on the initial investment.