Hartford, CT – Guideline changes for Connecticut’s Commercial Property Assessed Clean Energy (C-PACE) program have been announced by the Connecticut Green Bank.
The changes will create opportunities for developers of new construction, repositioning, and gut rehabilitation projects to take advantage of this innovative financing tool. Developers and borrowers can access up to 35% of the total eligible construction costs (TECC) in C-PACE financing based on the building’s designed energy performance. The changes were approved on March 25 by the Board of Directors of the program administrator and lender Connecticut Green Bank.
Some changes include:
- The minimum energy performance threshold to access C-PACE financing has been lowered.
- Projects must be designed above code (5% above IECC 2021 or 10 percent above IECC 2018 and prior) to receive C-PACE financing up to 20% of TECC.
- An additional, more rigorous option has also been added to promote even higher energy performance above code and access to greater C-PACE financing. Construction either 10% above IECC 2021 or 20% above IECC 2018 & prior unlocks up to 25% of the TECC in C-PACE financing.
- Developers have the option of accessing an additional 5% in TECC financing by incorporating two bonus technologies into the project design or an additional 10% for adding four bonus technologies.
Developers can also design projects to be all-electric and to achieve net zero to access 35% of TECC in financing.
- In order to demonstrate the level of energy performance above code, projects will use a whole building energy model approach. In addition, eligible multifamily properties will also have the option to use the HERS Index as a pathway to demonstrate the project meets minimum energy performance levels.