C-PACE loans will offer creative financing option for commercial property owners and new construction developers to spur more energy efficient development projects
NORFOLK, VA – On May 26, 2020, the Norfolk City Council unanimously approved an ordinance that added a new chapter to City Code entitled Commercial Property Assessed Clean Energy (C-PACE) that establishes a C-PACE Financing Program. Norfolk is the first locality in the region to pursue this new innovative financing option.
Commercial Property Assessed Clean Energy (C-PACE) is a creative financing option for existing commercial property owners and new construction developers to incentivize investment in energy efficiency, renewable energy, and water conservation projects for commercial and industrial properties. C-PACE allows up to 100% financing of those items via long loan terms. C-PACE loans for eligible improvements are paid through special assessments on the property.
C-PACE is changing the way building owners can modernize their properties with projects such as installing renewable energy, reducing carbon footprint, lowering energy and water bills. There are many properties in Norfolk that may qualify for this program. In Virginia, the counties of Arlington, Loudoun and Fairfax and the City of Fredericksburg have C-PACE programs. The implementation of this program will help the City reach its ultimate Climate Action Plan goals.
The Norfolk Economic Development Department is working on C-PACE program guidelines with expectation that the program will be launched in the coming months.