Learn the Basics
What Is C‑PACE?
Everything you need to know about C-PACE financing: a long-term, low-cost financing option for commercial property owners and developers.
FASTPACE FinancedAlley North, Oklahoma City, OK
Overview
What C-PACE finances—and how it works for you
C-PACE is a low-cost, long-term financing option for measures that improve a building’s energy performance, resilience, and water efficiency. C-PACE can be used for new construction, renovations, equipment upgrades, or to recapitalize or refinance completed work.
100%
Cost Coverage
30 Yr
Max Term
$100K–$30M+
Loan Size
Key Benefits
Why Property Owners Choose C‑PACE
100% of Eligible Costs
Covers hard and soft costs including design, engineering, permits, and installation. No out-of-pocket project costs.
Non-Recourse After Construction
The obligation stays with the property, not the owner personally.
Low-Cost, Fixed or Variable Rate
Competitive rates with predictable payments matched to the useful life of the improvement.
Up to 30-Year Terms
Long amortization, no balloon payments.
Preserves Equity and Cash Flow
Reduces the equity required for a project, freeing capital for other investments or improving overall returns.
Works at Every Stage
New construction & renovations, mid-construction recapitalizations, or to refinance completed work.
Common Use Cases
C‑PACE Project Types
New Construction
Ground-up commercial projects including hotels, multifamily, office, and mixed-use developments.
Major Renovation / Adaptive Reuse
Substantial redevelopment of existing commercial properties, including adaptive reuse and conversion projects.
Equipment Upgrades
Targeted upgrades to building systems including HVAC, lighting, envelope, elevator modernization, seismic and hurricane hardening, solar, EV charging, and more.
Recapitalization / Refinance
Retroactive financing for completed projects.
In the Capital Stack
Three Ways C‑PACE Works in the Capital Stack
Whether you're breaking ground, mid-construction, or refinancing a completed project, C-PACE can reduce equity requirements, lower your cost of capital, or fill a financing gap.
Increase Project Leverage
C-PACE reduces the equity required for a project, increasing overall return and easing the equity raise.
Lower Your Cost of Capital
C-PACE replaces a portion of higher-cost senior debt, reducing blended cost of capital and improving debt service coverage.
Eligible Measures
What Qualifies for C‑PACE Financing?
C-PACE finances a broad range of commercial property measures—from new construction and major renovations to targeted equipment upgrades and resilience improvements.Eligible measures vary by state and program. Contact us to confirm eligibility for your project.
Energy Systems
HVAC, lighting, elevator modernization, panel upgrades, controls and automation
Building Envelope
Roof, windows, doors, insulation
Water Conservation
Plumbing, water recycling, low-flow fixtures
Resiliency
Seismic retrofits, hurricane and wildfire hardening, stormwater and flood mitigation
EV & Grid
EV charging, demand response systems, microgrid infrastructure
Renewable Energy
Solar PV, solar thermal, wind, geothermal, fuel cell, and battery storage systems
Eligible Asset Types
C‑PACE Works Across Commercial Property Types
- Multifamily (5+ Units)
- Office Buildings
- Retail Centers
- Hotels & Hospitality
- Industrial & Warehouse
- Mixed-Use Developments
- Medical and Long-term Care Facilities
- Self-Storage
- Nonprofits, Charter Schools, Churches
- +More
Industry Growth
C‑PACE Market Adoption
C-PACE has grown from a niche financing tool into a recognized option for commercial property owners and lenders nationwide.
$9.7B
Financed Nationally
3,581
Commercial Projects
39+
Active States
Cumulative C‑PACE Investment
$0.9B'18
$1.5B'19
$2.3B'20
$3.7B'21
$5.2B'22
$7.3B'23
$9.7B'24
C-PACE financing is now used across all major commercial property types, reflecting its maturation as a recognized institutional asset class.
SourcePACENation Market Data
The Process
How FASTPACE Works
Initial Inquiry
Enter your property address and project scope using our Quick Quote tool. Get near-instant indicative terms for any C-PACE-eligible property in the country. No commitment required.Screening
FASTPACE reviews eligibility, project scope, and jurisdiction requirements. Initial documentation requested. Qualified deals are sent a term sheet.Underwriting
Following term sheet execution, full underwriting against FASTPACE credit standards.Closing & Funding
Loan closes and funds. Repayments attach to the property as a tax assessment, not as a personal guarantee. Repayments are typically collected annually or bi-annually depending on the jurisdiction.
Common Questions
FAQs
What is C-PACE?
C-PACE (Commercial Property Assessed Clean Energy) is a long-term financing solution for commercial property owners and developers. It covers energy efficiency, renewable energy, water conservation, and resilience improvements—for new construction, renovations, equipment upgrades, and recapitalization of completed work. The C-PACE loan is secured by a voluntary property assessment that stays with the property and is transferable upon sale.
What rate options are available?
FASTPACE offers two rate structures.
Fixed rate: A single rate locked for the life of the loan.
Fixed rate with periodic reset: A fixed rate for each discrete term period, typically three or five years, that resets to the then-current U.S. Treasury benchmark plus a fixed spread at the start of each new period. The reset structure typically results in a lower initial rate than a fully fixed loan, and includes the option to prepay at the conclusion of each reset period without penalty.
Fully amortizing with no balloon payment.
Fixed rate with periodic reset option not available in some states.
What can C-PACE finance?
C-PACE finances a broad range of permanently affixed improvements to commercial properties, including energy systems (HVAC, lighting, elevator modernization, panel upgrades, controls and automation), building envelope (roof, windows, doors, insulation), renewable energy (solar PV, wind, geothermal, battery storage), resiliency (seismic retrofits, hurricane and wildfire hardening, and flood mitigation), water conservation, EV charging, and microgrid infrastructure.
C-PACE can also be used for new construction, gut rehabs, equipment upgrades, and to recapitalize or refinance completed work.
Eligible measures vary by state and program.
Can C-PACE be used to refinance?
Yes. C-PACE can recapitalize or refinance completed work that includes eligible improvements, allowing property owners to free up equity post-construction. Most states allow a two to three year lookback period. FASTPACE offers retroactive financing with no maximum lookback in California, Missouri, and Florida.
How much of my project can C-PACE cover?
C-PACE can cover up to 100% of eligible hard and soft costs, including design, engineering, installation, and related fees. For most new construction and major repositioning projects, a meaningful portion of project costs will qualify—making C-PACE a natural fit for the capital stack.
How long are repayment terms?
C-PACE financing offers terms of up to 30 years, matched to the useful life of the improvements. FASTPACE offers both fixed-rate and fixed-rate-with-periodic-reset structures. Terms and rate options vary by state and program.
Is C-PACE non-recourse?
Yes. After construction completion, C-PACE is non-recourse. The obligation is secured by the property through a special tax assessment, not by personal guarantee. If the property is sold, the assessment can transfer to the new owner.
What does a typical C-PACE project look like?
C-PACE projects range from simple equipment upgrades to ground-up construction. Common examples include HVAC and roof upgrades at a warehouse, elevator modernization for an office building, solar installation on an existing property, new hotel construction, and adaptive reuse of a historic building into mixed-use apartments. If the work is permanently affixed to a commercial property and improves energy performance, resilience, or water efficiency, it likely qualifies.
What is FASTPACE’s role?
FASTPACE is a full-service C-PACE platform with $250M in committed capital. We originate, underwrite, close, and service C-PACE loans—handling the full transaction lifecycle so borrowers, contractors, and lenders don’t have to build C-PACE expertise themselves.
Does my property qualify?
Most commercial properties are eligible, including office buildings, hotels, multifamily (5+ units), retail, industrial, warehouse, self-storage, medical facilities, and mixed-use developments. The property must be located in a state with an active C-PACE program, and the owner must be current on property taxes and mortgage payments.
Eligibility varies by state and program—run a quick quote to check your property in about two minutes.
How long does the process take?
It depends on project complexity, how quickly the borrower provides underwriting documents, and mortgage lender consent timing. Some projects close in as little as 45 days. Most close within 2 to 4 months.
Do I need my mortgage lender’s consent to use C-PACE for my project?
Yes. Because C-PACE repayment is structured as a property tax assessment, mortgage lenders must provide formal consent before a C-PACE assessment can be placed on the property. During pre-screening, we work with borrowers to obtain conditional approval from their senior lender. Once the project is underwritten, formal consent is obtained as part of our standard closing workflow. For lenders who are new to C-PACE, we provide educational materials and direct support.
When does the contractor get paid?
Contractors are paid upon completion of the work, once required permits have been obtained and permission to operate (PTO) has been confirmed where applicable. FASTPACE coordinates the disbursement process directly. Contractors do not need to manage the financing timeline.
Can C-PACE be combined with other financing?
Yes. C-PACE is designed to work alongside conventional financing. It can be layered with mortgage debt, construction loans, tax credits (including ITC and LIHTC), grants, and other incentive programs. In many cases C-PACE reduces the equity required for a project, improving overall returns and easing the equity raise.
What do I need to participate as a contractor?
Contractors must hold active state licenses and carry appropriate insurance for the work being performed. No C-PACE-specific certification or expertise is required. FASTPACE handles the financing process. Contractors refer the opportunity and stay focused on the installation.
How do I refer a project?
Run a quick quote at fastpace.com using the property address and project scope. You’ll receive indicative terms in about two minutes. If the deal looks like a fit, FASTPACE handles underwriting, closing, and servicing from there.
You can also contact us directly at team@fastpace.com to discuss a specific project.
How does portfolio management and master servicing work?
FASTPACE serves as portfolio manager and master servicer on all loans originated through the platform. This includes billing, payment processing, collections, loss mitigation, assessment management, reporting, and coordination with county tax authorities where repayment is collected on the tax roll. Lenders receive regular reporting and have full visibility into portfolio performance without managing servicer and tax roll administrator relationships themselves.
What underwriting standards does FASTPACE apply?
FASTPACE applies a proprietary underwriting framework covering property eligibility, borrower qualification, loan-to-value limits, debt service coverage, improvement eligibility, and documentation requirements. Our standards are designed to meet bank examiner expectations and are consistent with safe and sound lending practices. Lenders who originate through the FASTPACE platform receive a complete underwriting package at closing.
Can C-PACE be used for building acquisition?
In select states and jurisdictions, C-PACE can finance embodied carbon measures, including the acquisition of existing buildings that would otherwise be demolished, alongside eligible improvements to the existing property. Currently available in Colorado and New York City, with additional states expected to follow. Contact us to discuss eligibility in your market.