The Illinois Energy Conservation Authority NFP (IECA), an Illinois not-for-profit corporation, has been at the forefront of developing Commercial Property Assessed Clean Energy (C-PACE) programs in Illinois (IECA PACE Program).
C-PACE is an innovative financing tool that provides low-cost, long-term funding for energy efficiency, renewable energy and water conservation projects in commercial buildings (C-PACE Financing). Property owners may obtain 100 percent upfront financing from private capital providers for up to 30 years for improvements such as HVAC, lighting and solar photovoltaic (PV) systems in both existing buildings and new construction projects.
One of the distinguishing features of C-PACE is that it is secured by a special assessment lien on the property, and is repaid as a line item on the property tax bill. Because it “runs with the land”, the C-PACE special assessment does not accelerate or become due upon sale, allowing property owners to invest in deeper retrofits without paying off the financing in the short term.
Nationwide, C-PACE has been enabled in 36 states, including the District of Columbia, and has expanded into Canada and Europe. In Illinois, DuPage and Kane Counties are administered by the IECA. Executive leadership of the IECA have also worked with stakeholders to develop the C-PACE law and are working to adopt and implement C-PACE programs around the state and county.