Powering New Jersey’s Clean Energy Future

How the Program Works

The Garden State Commercial Property Assessed Clean Energy (“C-PACE”) Program provides a new form of financing for renewable energy, energy efficiency, water conservation, and resiliency-related improvements across New Jersey.

The Program enables eligible commercial, industrial, agricultural, and certain multi-family residential property owners to access financing for qualifying improvements and repay through an additional assessment to their municipality—similar to their real property tax.

Projects are secured by a special assessment lien on the improved property. Like other benefit assessments, a C-PACE Assessment is a non-accelerating, senior lien secured by the property. The repayment obligation transfers automatically to the next owner if the property is sold and, in the event of default, only the payments in arrears are due—the underlying loan cannot be accelerated.

Financial Advantages

Because payment is secured by a senior lien, C-PACE projects are seen as less risky than typical loans, allowing capital providers to lend at lower interest rates. The security arrangements also enable longer loan durations. For the Garden State C-PACE Program, the financing term cannot exceed the Weighted Average Useful Life (WAUL) of the improvements being made, capped at 30 years.  

Longer loan terms result in lower periodic debt service payments, making it easier for energy efficiency, water conservation, and renewable energy projects to be cashflow-positive from the outset.

The Garden State C-PACE Program also is flexible in not requiring a minimum or maximum financing amount; however, financial terms of the C-PACE transaction are solely determined and negotiated between the Eligible Owner and the Capital Provider.  

Public Purpose & Impact

Assessments are a tool which municipalities levy on real estate parcels to serve valuable public purposes. C-PACE builds on a long history of using such assessments and serves the public through reducing energy costs, stimulating the economy, potentially improving property valuation, reducing greenhouse gas emissions, and creating jobs. 

Over the past decade, C-PACE programs in more than two dozen states around the country have proven an effective tool to attract private capital into the renewable energy, energy efficiency, and resiliency markets.