As demand for solar energy surges across America, today the Solar Energy Industries Association (SEIA) and Alta Energy jointly released a white paper highlighting an underutilized financing tool that can help boost commercial and industrial (C&I) solar development nationwide.
Commercial Property Assessed Clean Energy (C-PACE) allows a property owner to finance 100 percent of the cost of solar and/or energy efficiency upgrades as a voluntary property tax assessment on a commercial building for 10-30 years and can be easily transferred to new owners, the paper notes.
“C-PACE can open numerous state markets where third party power purchase agreements (PPAs) are not allowed, or too ambiguous to finance, as well as provide a variety of other benefits,” said Mike Mendelsohn, SEIA’s senior director of project finance and capital markets. “Without a doubt, C-PACE has the potential to vastly expand solar markets across this country and we hope developers seriously consider it as a viable option moving forward.”
In 2016, C&I solar development represented approximately 6.5 percent of the total U.S. solar market. With clear room to grow, SEIA and Alta Energy’s research shows, if properly utilized, C-PACE could both strengthen existing C&I markets and help expand development to more than 4.5 million new properties across the U.S.
“As we advise companies with facilities across the country about how to best meet their sustainable energy objectives, we must understand the unique challenges inherent to each client in each market and be able to present strategies and plans that provide the best possible outcome,” said Sam Lee, Alta Energy’s CEO.“Having C-PACE financing as an option in our toolkit removes a barrier some organizations have faced, and enables us to help more of our clients implement solar as a part of their energy management plans.”
To read the white paper and learn more about C-PACE as a financing mechanism, go to https://www.seia.org/research-resources/opening-ci-solar-markets-c-pace.
Celebrating its 43rd anniversary in 2017, the Solar Energy Industries Association® is the national trade association of the U.S. solar energy industry, which now employs more than 260,000 Americans. Through advocacy and education, SEIA® is building a strong solar industry to power America. SEIA works with its 1,000 member companies to build jobs and diversity, champion the use of cost-competitive solar in America, remove market barriers and educate the public on the benefits of solar energy.
About Alta Energy:
Alta Energy provides comprehensive analytics, strategic advice, and procurement services for companies looking to become more sustainable and profitable through the use of renewable energy. Alta Energy partners with its customers to deliver holistic solutions that are both technology and service neutral, representing their customers’ best interests and enabling them to achieve the environmental and economic benefits of renewable energy.