Opening C&I Solar Markets with C-PACE
The US solar industry is largely concentrated on the East and West Coasts (Fig. 1), and with good reason: coastal markets have high energy prices, attractive incentives, and diverse ownership models that allow commercial property owners to decide their appetite for investment. However, the majority of US states see lackluster commercial solar development. This challenge can be addressed using Commercial Property Assessed Clean Energy (C-PACE), a financing tool that allows a property owner to finance 100% of the cost of solar and/or energy efficiency upgrades as a voluntary property tax assessment on a commercial building for to 10-30 years. The assessment is tied to the building, not the tenant, and can be passed from owner to owner via property sale. It is considered financed ownership, not third-party owned solar.
This whitepaper provides an overview of C-PACE and how it can be used to encourage the growth of commercial and industrial (C&I) solar markets in the United States.