How C-PACE helps industrial property owners save
Outdated, inefficient HVAC systems, lighting, water management, and insulation are costing industrial property owners. According to data from the U.S. Energy Information Administration, the industrial sector consumes a considerable amount of energy in the U.S., accounting for 36% of total end-use energy consumption. Water consumption resulting from industrial processes and heating and cooling also adds up, making energy and water a significant line item for industrial building owners.
Overspending on energy and water is not favorable to your bottom line but upgrading to newer, more modern equipment may not be in the budget either. Fortunately, there is a solution! To help industrial property owners afford vital energy and water improvements, the Commercial Property Assessed Clean Energy (C-PACE) program offers low-cost financing with longer terms and typically no upfront costs.
C-PACE helps industrial property owners reduce their monthly energy and water bills, leaving many of them cash-flow positive. Even a seemingly small upgrade from conventional lighting to LED lights can make a big impact, saving you up to 90% per fixture. Yes, property owners like you are getting all new equipment to take care of their buildings’ deferred maintenance, often improving their cash flow with little to no out of pocket expenses.
What is C-PACE financing?
In cooperation with your county or city, the C-PACE program offers industrial property owners a loan through a voluntary property assessment. The loan attaches to the property, not you personally, and is transferable to a new owner if the property is sold. Not sure if you qualify? Lone Star PACE, an established Texas C-PACE administrator, will help you understand program eligibility requirements and provide you with the resources to get started.
Contractors, lenders, and commercial property developers: If you haven’t heard of C-PACE, see below to understand how it benefits you and your clients.
Contractors: Do you wish there were a way to increase the scope of your industrial sector building projects? Helping clients make smarter, modern, energy and water-efficient upgrades is easier with C-PACE. Combined with tax incentives and federal rebates, a client can save even more and you can create a more competitive industrial property. C-PACE answers the age old question clients ask of “that sounds great but how do I pay for it?”
Lenders: The C-PACE program is a win-win for both clients and the community. Attract more clients by promoting this affordable financing opportunity and help the community by promoting a program that accelerates economic growth while creating sustainable buildings.
Commercial property developers: Affordable capital is not always attainable, but thanks to the C-PACE program you now have long term low cost options. Take advantage of the C-PACE program to reduce your risk with non-recourse financing that attaches to the property, not you personally. Make your community a better place by developing smarter, more efficient industrial properties.
Sources: https://www.eia.gov/energyexplained/use-of-energy/industry.php, https://www.impomag.com/maintenance/article/13248785/5-ways-industrial-led-lighting-cuts-energy-costs-today-down-the-road