About C-PACE
Commercial Property Assessed Clean Energy (C-PACE) is a policy-enabled mechanism commercial property owners or their tenants can use to finance energy efficiency, renewable energy, water conservation, and resiliency improvements on their property. C-PACE financing is secured by a voluntary special assessment recorded against the property as a lien. This means the obligation stays with the property even if ownership changes. A tenant can apply for C-PACE funding with the property owner’s participation.
C-PACE Financing In Nevada
C-PACE is enabled in over 30 states across the U.S. The State of Nevada authorized C-PACE under Chapter 271 of the Nevada Revised Statutes (NRS), permitting municipalities to create districts for financing or refinancing Qualified Improvement Projects (QIPs). QIPs can include energy efficiency, renewable energy, water efficiency, or resiliency improvements. Each municipality or jurisdiction that has enabled C-PACE has their own program requirements, application process, and legal documents. Learn more about C-PACE.
Who is involved in a C-PACE Transaction
Property Owner
Agrees to the voluntary assessment and is responsible for project compliance. The property does not need to be owner-occupied. The Property Owner, or the tenant with the Property Owner’s participation applies for C-PACE, enters into a financing agreement with a Qualified Capital Provider, and makes payments to the Capital Provider under the financing agreement. Under some leases, the C-PACE structure may enable a Property Owner to pass the C-PACE assessment obligation on to the tenant.
Capital Provider
Responsible for establishing the financing terms, conditions, and underwriting standards and independently determining whether to invest in a project. Provides financing for the Qualified Improvement Project after receiving assignment of the assessment lien from the City or County and executing financing agreement with the Property Owner or tenant, as applicable. Handles billing and collection of C-PACE payments.
Local Jurisdiction
Authorizes the Program, executes the Voluntary Assessment Agreement, records the Notice of Assessment and Assessment Lien, and assigns the lien to the Qualified Capital Provider. The City or County typically does not provide financing and bears no financial liability for project costs.
Program Administrator
Oversees program operations on behalf of the City, including application review, eligibility verification, stakeholder coordination, and compliance monitoring.
Contractors and Service Providers
Also known as Qualified Service Companies, these contractors and service providers perform installation of improvements or conduct feasibility studies (e.g., energy audits) required under C-PACE. Qualified Service Companies must meet program standards and comply with all applicable laws and licensing requirements.
Mortgage Holder(s)
Any existing lender with a lien on the property must provide written consent before the C-PACE assessment can be recorded, ensuring compliance with existing loan agreements. C-PACE financing cannot be accelerated in the event of default and only current payments are collectible in delinquency.
Appraiser
The amount of a C-PACE lien may not exceed 25% of the value of the property for retrofits and 35% for new construction or gut rehabilitation. An appraiser must provide an independent valuation of the property to confirm that the proposed C-PACE financing aligns with program requirements, such as loan-to-value ratios and underwriting standards.