Energy Efficiency, GHG Emissions, Finance - December 16, 2022
Philadelphia C-PACE Reaches $100 million in Clean Energy Financing
The Philadelphia Energy Authority announced the closing of $30.08 million in Commercial Property Assessed Clean Energy (C-PACE) financing for a Freezpak cold storage facility in Philadelphia.
The deal was completed with Nuveen Green Capital.
This is the largest C-PACE deal to-date in Pennsylvania and brings the total amount of C-PACE dollars invested by private sector lenders to $100 million in Philadelphia.
C-PACE financing for this project is being used for extensive energy efficiency improvements, making the building 30% more efficient than required by Philadelphia’s building energy code. Other projects include energy-efficient walls and glass, interior and exterior LED lighting, variable volume air handlers, freezer evaporators, domestic water heater, and exhaust fans.
According to building owner BG Capital‘s Managing Partner Joe Byrne, “in these challenging times, alternative debt solutions like C-PACE have now become critical in rounding out the capital stack within larger scale projects. We are extremely fortunate to work with the team at Nuveen Green Capital on getting this deal over the finish line and working with a company whose product has an emphasis on sustainability within our industry.”
“This kind of collaboration between the public and private sectors has brought real economic development to Philadelphia, and is just the type of innovation we will need to see as climate funding from the Inflation Reduction Act begins to flow,” said Matt Stern, Senior Director of Commercial Programs at the Philadelphia Energy Authority, which administers the Philadelphia C-PACE program, in a statement.
Commercial Property-Assessed Clean Energy (C-PACE) financing allows commercial and multi-family property owners to borrow money for energy efficiency, water conservation, renewable energy, indoor air quality and resiliency projects. Repayments are made via a special assessment similar to a property tax assessment. Key features include the following: 100% of project costs can be financed; repayment terms are up to 30 years; the special assessment stays with the property in the event of a sale.