Financing for Energy Upgrades
Energy efficiency and renewable energy improvements can help building owners achieve:
- Improved, high-performing properties
- Lower operating expenses
- Positive impacts on communities through reduced greenhouse gas emissions
Eligible projects include solar PV, solar thermal, ground and air source heat pumps, lighting improvements, HVAC, insulation, chillers, windows, pumps, and smart controls.
“Climate change will have devastating impacts and our community must do our part to reduce greenhouse gas emissions,” says Mayor Kamal Johnson. “I’m happy to offer this program to reduce emissions and save property owners money.”
EIC NY Open C-PACE differs from traditional bank loans
- Financing is available for up to 100% of the project cost or can be combined with other financing
- Competitive private financing from EIC-approved capital providers
- Customizable loan terms up to the expected life of the improvement(s) (generally 20-30 years)
- Benefit assessment lien is subordinate to municipal taxes and senior to other liens (consent from mortgage holder is required)
- Automatically transfers to new owner upon sale of property
- Available for energy efficiency and renewable energy measures (Projects are qualified according to NYSERDA’s C-PACE Guidelines)
- PACE can be included in a project’s capital stack to reduce the need for higher-cost financing, lowering the weighted average cost of capital needed for the project
Getting startedOpen C-PACE is a competitive, open-market PACE program
- EIC provides property owners with a list of approved capital providers who are experienced in providing PACE financing in a range of project types and offer additional services such as project governance and engineering. We encourage you to reach out to multiple capital providers on the list to find the best match for your project.
- The capital provider can work with you to obtain an energy audit and determine the scope of work for your project, and then prepares the transaction documents on your behalf and submits them to EIC for approval.
- EIC reviews the transaction documents and confirms that the project complies with NYSERDA’s Commercial PACE Guidelines.
- Once you enter a Finance Agreement with your capital provider, EIC records the benefit assessment lien which secures repayment of the financing. EIC will handle all billing directly with you going forward
Mayor Johnson’s Climate Smart Task Force initiated the project. In reviewing past projects and opportunities for additional savings, the task force identified that the city had initiated a previous iteration of the PACE program which put the loan on the property tax bill and relied on the municipality guaranteeing the payment.