Virginia Beach C-PACE Program

Virginia Beach C-PACE Program

Commercial Property Assessed Clean Energy (C-PACE) Statewide Program

The Virginia Beach C-PACE Program is an innovative financing program that offers an open-market solution for building owners and promotes clean energy and economic development. The program is a financing tool that allows for energy efficiency improvements to be made to commercial and industrial properties by having access to low-cost, long-term financing. The program authorizes commercial property owners to finance energy efficiency, water conservation, and renewable energy projects with minimal upfront costs. Revised PACE legislation passed in 2022 includes financing grid resiliency projects, electric vehicle charging infrastructure, stormwater management, environmental remediation, and indoor air quality. Virginia Beach joined the statewide C-PACE program on Feb. 21, 2023 under Chapter 35.5 of the Codified Ordinances and coordinates with Virginia PACE Authority to administer the program.

Improvements financed using C-PACE can be completed with minimal up-front, out-of-pocket costs to property owners and can generate positive cash flow upon completion. The results may include reduced energy or other operating costs, improved business profitability, increased property value and improved resiliency to the real estate. C-PACE is paid through a levy on a lien and the PACE loan is repaid through the property taxes.

Benefits

Community Benefits
  • Saving opportunities for local businesses
  • Revitalize buildings and improve property values
  • Attract new development and construction projects
  • Create more jobs
  • Conserve resources and reduce pollution
Property Owner Benefits
  • No money out of pocket: 100 percent financing including hard and soft costs
  • Long-term, fixed-interest financing (up to 30 years) resulting in lower annual payments
  • Typically cash flow is positive within the first year.
  • Property owner may pass through C-PACE assessment to tenants (if allowed by lease)
  • C-PACE assessment transfers upon sale to the next property owner (“runs with the land”)

How it Works

  • Fill out the pre-application to see if you are eligible to use C-PACE
  • If eligible, develop your project scope and submit the final application
  • Select a qualified C-PACE lender to finance your project
  • VPA approves your project, funding is provided, and a PACE lien is placed on the property
  • Complete construction and pay back as a special assessment on your property

Eligibility and Applying

Contact

The Virginia PACE Authority (VPA) is a 501(c)(3) nonprofit organization that provides C-PACE program administration services sponsored by the Commonwealth of Virginia. In 2022, VPA designed the statewide program incorporating industry best practices that promote clean energy and economic development projects. As the program administrator, VPA works with commercial businesses, property owners, contractors, capital providers and local governments to facilitate the financing of energy efficiency, renewable energy and resilient projects on both new and existing buildings. For more information about the program, contact Abby Johnson, C-PACE program administrator at info@virginiapace.com or call (757) 603-3555.

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