C-PACE CHP Project Exampleback to Financing Main Page
Project Example: Meriden YMCA in Meriden, CT installed a 60 kW CHP system alongside energy efficient lighting upgrades in 2015 using C-PACE financing. The total project cost was ~$330,000 and provided roughly ~$34,450 energy cost savings per year from both the CHP and lighting upgrade. The C-PACE financing term is for 19 years, and the annual C-PACE assessment for the combined project is $27,321.
Commercial PACE (C-PACE) is a financing structure that allows building owners to borrow money for energy efficiency, renewable energy, or CHP projects and make repayments via an assessment on their property tax bill. This financing arrangement then remains with the property even if it is sold, facilitating long-term investments in onsite energy systems and building performance. C-PACE may be funded by private investors or government programs, but it is only available in states or jurisdictions with enabling legislation and active programs. C-PACE financing for CHP and other energy projects can be beneficial because it allows for 100% funding of development costs and enables a secure funding mechanism implemented on a positive cash-flow basis.