Commercial Property Assessed Clean Energy (C-PACE) is a state policy-enabled financing mechanism that allows building owners and developers to access the capital they need to make energy-related deferred maintenance upgrades in their existing buildings, cover up to 20% of the cost of new construction, and make renewable energy accessible and cost-effective. See if C-PACE is available in your state, here.
NRSC also works with financing companies to offer loans for solar power systems at competitive rates, including no-money down options for commercial applications. Financing still allows you to benefit from applicable tax credits and incentives, and the savings on your electricity bills may offset your financing payments.
NRSC will help you understand and choose the best financing solution to fit your goals.
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How does solar financing work?
Commercial Property Assessed Clean Energy (C-PACE) is a state policy-enabled financing mechanism that allows building owners and developers to access the capital they need to make energy related deferred maintenance upgrades in their existing buildings, cover up to 20% of the cost of new construction, and make renewable energy accessible and cost-effective.
C-PACE makes it possible for commercial property owners to obtain low-cost, long-term financing for energy efficiency, water conservation, and renewable energy projects. Most commercial property types qualify for C-PACE financing. The program starts with a state-level government policy that classifies clean energy upgrades as a public benefit — like a new sewer, water line or road.
These upgrades can be financed with no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements and/or new construction infrastructure (typically ~20–30 years). The assessment transfers on the sale of the property and can be passed through to tenants where appropriate.
Does it vary state to state?
C-PACE must be authorized by state legislation and requires further authorization from local governments. More than 35 states have adopted C-PACE enabling legislation because of the opportunities for investment in local businesses, energy and cost savings, and job creation.
How much is my tax credit?
Businesses that install commercial solar panels are eligible to claim the federal Investment Tax Credit (ITC). In 2019, this credit reduced the taxes that businesses paid dollar-for-dollar up to 30% of the amount invested. Congress recently passed a delay of what had been a planned phase down of this tax credit. The reduction will be held to 26% for 2021 and 2022. Note: the change in administrations in 2020 may reverse this phase out.
Additionally, there is a federal MACRS depreciation tax benefit, which allows commercial solar customers to take the full depreciation benefit on their solar project in year one.
What are the benefits of financing a commercial solar project?
Financing allows businesses to install solar panels with little to no upfront costs while benefiting from lower energy bills, tax incentives, and long-term savings. Flexible payment options ensure affordability while maximizing ROI.
Speak to an NRSC expert today to learn more about financing your next project!
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