The Commercial Property Assessed Clean Energy (C-PACE) program is a low-cost, long-term financing tool for building owners who want to make energy efficiency upgrades to their commercial and multi-family buildings with minimal up-front costs. C-PACE is administered by the Virginia PACE Authority with support from the Virginia Department of Energy (Virginia Energy).
Fairfax County established its own program in 2019 but in 2023 opted into the statewide program in an effort to make C-PACE financing more attractive for borrowers and lenders for both new construction projects and improvements to existing buildings.
Property owners may invest in energy efficiency, renewable energy and water efficiency improvements. Revised PACE legislation passed in 2022 includes financing grid resiliency projects, electric vehicle charging infrastructure, stormwater management, environmental remediation, indoor air quality and the refinancing of prior projects.
C-PACE is paid through a levy on a lien and the PACE loan is repaid through the property taxes. Building improvements financed using C-PACE can result in reduced energy or other operating costs, improved business profitability, increased property value and improved resiliency to the real estate.
All commercial properties, excluding condos and multifamily residential with five units or fewer, are eligible for this program.