• Posted: December 8, 2023
• better communities, better construction, Bridgeport, C-PACE, Commercial Property Assessed Clean Energy (C-PACE), Funding, IBEW Local 134, IECA, Illinois Energy Conservation Authority NFP (IECA), Maria Kowalik, power of better, Ramova Theater

 

For Chicago area property owners and facility managers looking to upgrade to renewable energy systems, financing remains a major hurdle. Upfront costs for solar panels, wind turbines, battery storage, and other clean energy infrastructure can be daunting. However, innovative funding programs like the Commercial Property Assessed Clean Energy (C-PACE) initiative administered by the Illinois Energy Conservation Authority NFP (IECA) can make these projects achievable. 

How C-PACE Works

C-PACE provides affordable, long-term financing for renewable energy and energy efficiency projects. The program allows property owners to finance up to 100% of costs through a voluntary assessment on their property taxes. Repayment terms can extend up to 25 years to keep annual expenses low. Plus, the assessment stays with the property upon sale, avoiding upfront capital outlays.  

Renewable energy installations eligible for C-PACE financing include solar photovoltaic systems, solar hot water systems, wind turbines, geothermal heating/cooling, and battery storage systems paired with renewables. Efficiency upgrades covered under C-PACE include HVAC improvements, building envelope (insulation, windows) enhancements, lighting retrofits, water conservation measures, and more.

The IECA currently administers C-PACE in 14 Illinois counties, including Cook County. To participate, existing buildings must have four or more units, 100,000+ square feet, or $2 million+ in assessed property value. New construction over 50,000 square feet also qualifies. The IECA pre-qualifies projects based on the savings-to-investment ratio and verifies contractor qualifications.

C-PACE in Action

One example of C-PACE financing at work in the Chicago area is highlighted in episode two of Powering Chicago’s YouTube series The Power of Better. This episode highlights a C-PACE-funded project to revitalize the dilapidated Ramova Theater in Bridgeport and turn it into a brewery, restaurant and live music venue powered by clean energy. 

C-PACE helped fund about one-third of the multimillion-dollar Ramova Theater renovation project.

“It can finance up to 100% of any clean energy project, including energy efficiencies, renewable energies, water conservation, and resiliency type projects,” Senior Vice President of the IECA, Anna Maria Kowalik said.

How to Apply for C-PACE

Property owners/developers simply complete an application through an IECA-authorized PACE lender like Twain Financial Partners. There are no upfront costs to apply. If approved, the property tax assessment kicks in once the project is completed, keeping payments manageable through the longer repayment period. 

The benefits of C-PACE for renewable energy projects are tremendous. The IECA highlights no upfront capital required, cash flow preservation, extended financing terms, competitive rates, and the ability to opt into new incentives like solar tax credits. Businesses can align sustainability goals with cost savings from energy efficiency and renewable power generation.

As Chicago pushes towards 100% renewable energy by 2040, innovative funding mechanisms like C-PACE will play a key role. Contact the IECA to learn more about financing your next renewable energy or efficiency upgrade with C-PACE.