The Illinois Energy Conservation Authority NFP (“IECA”), an Illinois tax-exempt 501(c)(3) nonprofit organization, announced the closing of a $345,000 Commercial Property Assessed Clean Energy (“C-PACE”) refinancing deal for energy and water efficiency improvements installed for a self-storage facility in Huntley, Illinois.
The C-PACE program is an economic development tool that helps commercial property owners reduce operating expenses and improve the efficiency and sustainability of their buildings and operations. This transaction marks the first C-PACE deal financed in McHenry County.
Like traditional project financing, C-PACE uses borrowed capital to pay for upfront costs associated with energy efficiency or renewable energy improvements. However, the borrowed capital is repaid over time via a voluntary tax assessment, which allows for longer-term financing and transferability of the repayment obligations to the next property owner.
Introduced in Illinois in 2019, C-PACE provides long-term, fixed-rate funding to private building owners for energy efficiency, renewable energy, water conservation, electric vehicle charging and resiliency projects to be installed in both existing or new commercial properties. C-PACE financing is currently available in 37 states, including the District of Columbia, and stimulates local economies by funding the upfront capital for PACE projects that may lower operating costs, generate clean energy, instill resiliency and promote water use conservation in commercial properties. From 2009 to 2020, C-PACE programs have funded more than 2,500 qualifying projects nationwide for a total of $2 billion, while also creating over 24,000 jobs.