What You Can Do with C-PACE in NJ: Benefits for Owners, Developers, Investors, and The Community
New Jersey is about to get C-PACE (Commercial Property Assessed Clean Energy), a paradigm-shifting financing tool for driving economic development and jobs while decarbonizing our built environment. NJPACE is looking for partners and collaborators to maximize the opportunities created by the NJEDA’s new Garden State C-PACE program, in meeting the state’s green jobs, economic development, environmental justice, and climate goals.
C-PACE saves property owners money, reducing energy waste, and switching buildings to renewables and resilience. Properties can be designed new and/or can be retrofitted with non-recourse, long-term, assumable financing with no out-of-pocket costs. Energy efficiency, renewable energy, and resiliency measures in gut-rehab and new construction can be financed with up to 35% of the capital stack. C-PACE provides a low-risk, highly-secure vehicle for private investment, with repayment collected through the property tax system as special assessments (similar to public sector improvements such as sidewalks and sewer connections).
For the community, C-PACE offers the possibility of a real reduction in the carbon footprint, and funds both mitigation and adaptation projects like stormwater and floodproofing measures in commercial buildings. In addition to traditional office and retail properties, C-PACE also serves multifamily, agricultural, industrial and institutional buildings, including churches, schools, medical facilities, and recreational facilities.
While C-PACE funding is growing across the country, it is not reaching its potential, nor having the kind of impact that’s needed to achieve policy goals. NJPACE has fought for over a decade to make C-PACE available in New Jersey, during which time thirty-seven other states have completed more than $7 billion in C-PACE investment, creating 89,000 new jobs, and resulting in more than $15 billion in new economic development.
But with fewer than 3,500 C-PACE projects completed across the country, we in Nj can and must do better. The potential is real, but it won’t happen by itself. The experience in other states is that uptake has been slowed by lack of market awareness and outreach. New Jersey has the potential to “knock it out of the park” with C-PACE over the next couple of years. New Jersey has the people, the networks and the competitive spirit to recapture its previous leadership role in the green economy through C-PACE.
Our goal is to make sure that C-PACE achieves its potential for meaningful socioeconomic and climate action. We will be working with towns, counties, property owners (for-profit and nonprofit) to scale C-PACE throughout New Jersey. If you’d like to work with us to achieve this important and ambitious goal, we invite you to contact us.
NJPACE, the 501c3 nonprofit that’s been leading the way on C-PACE from the start, offers know-how and strategies to assist stakeholders in maximizing the benefits of C-PACE in commercial real estate, local government, nonprofits, and communities. We can facilitate transactions, help to promote success stories and guide municipal and county programs to achieve their policy objectives. We can operate on a consulting or donation basis, provide access to technical services, and help navigate the rich opportunities and seemingly complicated facets of this breakthrough financing program. If you’re interested, please get in touch with us.
Victoria Zelin, Director of Relationships 908-507-3150
Gus Escher, Director of Finance 609-413-1749
Jonathan Cloud, Executive Director 908-581-8418