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Anchorage Launches Commercial Property Assessed Clean Energy Program

May 12, 2021 | Energy, Government, News

The Municipality has launched a program to enable the financing of clean energy projects for commercial buildings. The Commercial Property Assessed Clean Energy (C-PACE) program helps owners of commercial and industrial properties obtain low-cost, long-term financing for energy efficiency and renewable energy projects. The costs are paid back over time through a voluntary assessment on the property tax.

“C-PACE overcomes barriers for property owners, spurring economic development and jobs at a time when we need them most,” says Chris Schutte, Director of Economic and Community Development. “The projects will improve underlying building stock, reduce energy costs, and create jobs, all with private financing.”

C-PACE makes energy-efficient upgrades to Anchorage’s commercial buildings easier to finance. The financing arrangement attaches the payment obligations to the property as a lien, rather than to the borrower, and reduces collection risks for lenders.

C-PACE financing is intended to cover the full costs of eligible improvements, with little or no up-front, out-of-pocket cost to the owner.  C-PACE will be offered to commercial property owners on a voluntary basis, with financing provided by private capital providers and not from public funds or resources. The cost of administering the program is expected to be entirely offset by program fees.

“C-PACE is about creating opportunities for local property owners to access private capital,” says Acting Mayor Austin Quinn-Davidson. “It’s also part of our commitment to finding clean energy solutions that are good for the environment and good for our economy.”

To date, thirty-seven states and Washington D.C. have enabled PACE legislation. Nationwide, more than $2 billion has been invested through more than 2,500 commercial projects, creating 24,000 jobs.

Anchorage is the first local government in Alaska to create a C-PACE program, though the local program was designed with partners to be easily adopted by other tax assessing jurisdictions in Alaska.

Visit muni.org/CPACE for more information, including instructions on how to initiate an application.

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