How commercial property owners can reduce their energy expenses
The Department of Energy estimates that, on average, 30% of energy consumed in commercial buildings is wasted. For business owners, that’s real dollars going down the drain every day. These costs add up and the inefficiencies place unnecessary strain on the power grid.
How would you like to reduce your monthly energy bill and free up funds for capital projects, budgetary expenses, or business expansion? What would extra savings mean for your business?
Commercial Property Assessed Clean Energy (C-PACE) is a program that works in cooperation with local governments to provide low-cost, longer term financing to commercial business owners for making energy and water efficiency improvements. Commercial property owners can finance eligible projects through a voluntary property tax assessment that attaches to the property, making the loan transferable if the property is sold.
To get started, commercial property owners contact a Texas C-PACE administrator to determine if their project qualifies and is located in an active C-PACE jurisdiction. Property owners may choose any qualified lender to finance their project and from there, work with a contractor or energy service organization of their choice to install the new equipment. Common improvements include HVAC systems, lighting, insulation, water conservation elements, and solar panels.
The fundamentals of C-PACE
- C-PACE financing typically covers all of the upfront hard and soft costs for water and energy conservation, so you don’t pay anything out of pocket.
- The loan is attached to the property, not to you personally, and easily transfers to a new owner if the property gets sold. That minimizes risk to you and potential losses if you decide to sell the property before the loan is paid off.
- Energy upgrades are improvements and increase the value and desirability of your property.
- Payback is affordable with longer financing terms of up to 30 years.
- Monthly energy expenses are reduced, with savings generally surpassing your annual assessment, leaving you cashflow positive.
How much money could you save on energy expenses annually while simultaneously improving the value of your property? Lone Star PACE administers C-PACE Programs across multiple jurisdictions in Texas and has a deep understanding of financings for public benefit. We’re happy to talk through the program in more detail and provide educational resources to help you learn more.