Connecticut's Clean Energy Finance and Investment Authority (CEFIA) is preparing to roll out a new program designed to encourage clean energy projects in commercial and industrial buildings throughout Connecticut.
The legislature has approved the state's Commercial Property Assessed Clean Energy (C-PACE) program, which will allow commercial and industrial property owners to pay for energy-related improvements to their properties using a finance program that offers low fixed rates and longer repayment periods than traditional loans, according to CEFIA.
Under C-PACE, the cost of an energy project may be funded by special financing arranged through CEFIA and repaid annually by property owners through a special assessment on their property tax bill. C-PACE spreads the cost of energy improvements over the expected life of the measures and allows the repayment obligation to transfer automatically, like other property assessments, to the next owner if the property is sold, CEFIA explains.
In exchange for access to C-PACE financing, building owners repay the cost of the upgrade through an assessment on property taxes. By attaching repayment for the upgrades to the property tax, C-PACE can attract lower-cost capital because it is viewed as a secure investment, according to CEFIA.
The program is scheduled to launch in early 2013.