Commercial Property Assessed Clean Energy

C-PACE

Fixed-rate financing repaid through the property tax assessment — up to 30 years, and it transfers to the buyer when the building sells.

Interest rate: 5–8% fixed; Roughly the 10-year Treasury plus about 3%
Term: Up to 30 years; Typically matched to the useful life of the improvements
Repayment: Property tax assessment; Billed and collected like any other special assessment
On sale: Transfers to the buyer; The assessment runs with the property, not the borrower
Availability: 40 states + DC; Adoption is often county-by-county within a state
2025 originations: ~$3.5B; Industry estimate; one provider alone originated over $2B

What C-PACE actually is

C-PACE is a financing structure that lets a commercial property owner fund energy, water and resiliency improvements through a voluntary assessment on the property tax bill. Because repayment is secured by the assessment rather than by the owner personally, terms run far longer than conventional commercial debt and the obligation stays with the property when it changes hands.

The thing that trips people up Most programs require written consent from the existing mortgage holder. Get that conversation started early — it is the single most common reason a C-PACE deal stalls.

When it is the right tool

Hotel and multifamily renovations where the capital stack is already tight
Office-to-residential and other adaptive reuse conversions
New construction where C-PACE fills the gap between senior debt and equity
Owners who expect to sell before a conventional loan would amortize
Deferred maintenance that a bank will not lend against

When it is not

Working capital or anything unrelated to the building
Properties in jurisdictions that have not adopted a program
Owners who cannot get senior lender consent, where the program requires it

Availability

Is C-PACE available where your property is?

Verified 2026-08-30

Forty states and the District of Columbia have C-PACE enabling legislation, but adoption inside a state is usually county by county. A state showing as active does not guarantee the specific jurisdiction your property sits in has opted in — that is the first thing to check.

CA OH TX PA WA MN MO MI IL CO VA OK NV WI CT NY MD MA UT KY DE TN MT AK HI DC OR NJ NE NM RI ME AR FL GA

Cumulative C-PACE investment

No program$2.6B

Covered in depth

Where we work street-level

Five markets we know in detail

California

Largest C-PACE market in the country by dollars, and by a wide margin the largest average project size. Multiple program administrators operate by county.

State guide → OH

Ohio

Highest project count of any state after Minnesota. Ohio's Energy Special Improvement District structure is the oldest and most heavily used C-PACE mechanism in the country.

State guide → TX

Texas

Roughly 80 jurisdictions have adopted C-PACE. Two competing program administrators, which means the same project can sometimes be run through either.

State guide → PA

Pennsylvania

Second-highest average project size in the country behind California, on only 30 closed projects. Adoption is county-by-county — roughly 21 counties have passed resolutions.

State guide → WA

Washington

Twenty projects, $279M — the largest average project size in the country alongside California. Six counties adopted with more in process.

State guide →

C-PACE questions that decide deals

Does C-PACE require a personal guarantee?

Typically no. The financing is secured by the property assessment rather than by the owner personally, which is one of the main structural differences from a conventional commercial loan. Confirm with the specific capital provider, since program and provider requirements vary.

What happens to C-PACE when I sell the building?

The assessment stays with the property and transfers to the new owner, along with the remaining payments. This is why a 30-year term can make sense for an owner planning to sell in five years — the buyer inherits the obligation and the improvements it paid for.

Can C-PACE be used for new construction?

In many states, yes. Program rules differ on how much of a new build qualifies, and some allow a look-back period so recently completed work can still be financed. This is a state-by-state question.

Does my mortgage lender have to approve C-PACE?

In most programs, yes — senior lender consent is required because the assessment sits ahead of the mortgage in priority. Many mortgage lenders now approve C-PACE routinely, but the consent process takes time and should start early.

How is C-PACE different from a bridge loan?

A bridge loan is short-term, usually floating-rate, recourse to the borrower, and has to be refinanced or repaid at maturity. C-PACE is long-term fixed-rate, attached to the property, and does not need to be refinanced. They solve different problems and are often used together.

Eligibility check

Will C-PACE work on this property?

Send the address, the property type and what the money is for. We will confirm whether the jurisdiction has a program and what the senior lender consent path looks like.

Commercial and business purposes only — we do not place consumer loans.
If the project does not qualify, we say so and tell you what would change that.
No credit pull to get an answer on program eligibility.