C-PACE Delivers 100% Financing
for Clean Energy Improvements for Nonprofits
C-PACE Financing from PowerGreen Capital: A Smart Way for Nonprofits to Save Energy and Money
Nonprofit organizations often face challenges when it comes to making energy efficiency and renewable energy improvements to their buildings. These projects can have significant benefits for nonprofits, such as reducing operating costs, enhancing comfort and productivity, and demonstrating environmental leadership. However, they also require upfront capital that many nonprofits lack or prefer to use for their core mission.
That’s where C-PACE financing from PowerGreen Capital comes in. C-PACE stands for Commercial Property Assessed Clean Energy, and it is an innovative way for nonprofits to access affordable and long-term financing for green energy upgrades.
C-PACE financing covers 100% of the project costs with no money down, and it is repaid through a voluntary benefit assessment on the property tax bill over a period of up to 25 years.
Typically the energy savings from the improvements will completely cover the financing costs, which means C-PACE financing from PowerGreen Capital is self-funding.
How does C-PACE work for nonprofits?
C-PACE works for nonprofits regardless of their tax-exempt status. Nonprofits don’t typically receive a property tax bill, but their municipality can assign a tax identification number in order to collect a C-PACE benefit assessment (similar to collecting a sewer assessment). The benefit assessment is tied to the property, not the owner, so it can be transferred to a new owner if the property is sold before the end of the repayment term.
C-PACE financing can be used for a wide range of energy efficiency and renewable energy projects, such as lighting upgrades, insulation, HVAC systems, solar panels, wind turbines, geothermal systems, and more. The only requirement is that the project must generate more savings than it costs over its lifetime (a positive cash flow). This means that nonprofits can start saving money from day one while improving their building’s performance and value.
What are the benefits of PowerGreen Capital C-PACE financing for nonprofits?
C-PACE financing offers many benefits for nonprofit organizations that want to make green energy upgrades to their buildings:
- No upfront capital required: C-PACE financing covers 100% of the project costs with no money down, so nonprofits don’t have to use their own funds or seek grants or donations.
- Long repayment term: C-PACE financing can be repaid over a period of up to 25 years, which allows nonprofits to spread out the cost and match it with the useful life of the project.
- Positive cash flow: C-PACE projects must generate more savings than they cost over their lifetime (a positive cash flow), which means that nonprofits can reduce their operating expenses and increase their bottom line.
- Transferable obligation: The C-PACE benefit assessment is tied to the property, not the owner, so it can be transferred to a new owner if the property is sold.
- Increased tenant health and comfort: The improvements financed by C-PACE tend to have a very positive effect on the health and productivity of the tenants or employees of the nonprofit organization.
