Commercial Property Assessed Clean Energy (CPACE) for Tax-Exempt and Public Entities (“CivicPACE”)

Technical Report · Sat Sep 29 04:00:00 EDT 2018

DOI:https://doi.org/10.2172/1474808· OSTI ID:1474808

Gilliland, Ed ^[1]

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1. The Solar Foundation, Washington, D.C. (United States); The Solar Foundation

This report summarizes the work of the CivicPACE team to open the market for property assessed clean energy financing for the nonprofit, tax exempt sector. Property Assessed Clean Energy (PACE) finances property improvements that are paid back through a line item on the property owner’s tax bill. Most states restrict such improvements to renewable energy and energy efficiency, although they may include water conservation and disaster related improvements such as hurricane or earthquake preparedness. When such projects are developed for commercial properties, it is referred to as commercial PACE or CPACE. When CPACE applies to tax exempt or nonprofit organizations, we refer to it as CivicPACE. CivicPACE also represents the name of this program. The purpose of the CivicPACE project was to help nonprofit tax-exempt organizations such as affordable housing, faith-based institutions, and schools gain greater access to financing for solar energy deployment through PACE. As such, the lessons learned and best practices from the CivicPACE team work is intended for state and municipal program designers, PACE administrators, solar installers, and nonprofit organizations. CPACE is experiencing rapid growth. Cumulative CPACE financing grew from 8.2 million in 2010 to 111 million in 2014 to 588 million in 2017. Renewable energy, mostly solar, represents about a quarter of the financing; the nonprofit sector represents about 10% of total financing. The Project Team was formed in early 2015 when solar financing options were limited for nonprofits (NPOs). Traditional bank financing was difficult for nonprofit organizations to secure since they are often viewed as a credit risk. Despite the growth of CPACE, few tax-exempt organizations were using the financing mechanism at the start of 2015. Nonetheless, CPACE financing appeared to have tremendous potential for solar development for tax-exempt organizations such as schools, churches, and multifamily affordable housing, because it addresses many of the traditional nonprofit financing roadblocks, such as credit risk. Given the benefits and the rapid growth of CPACE, the opportunity to expand CPACE financing for solar development on tax-exempt buildings was timely. The Project team was comprised of The Solar Foundation (TSF), Urban Ingenuity (UI), and Clean Energy Solutions, Inc. (CESI). The Solar Foundation was the Principal Investigator and overall team lead. The Solar Foundation is an independent 501(c)(3) nonprofit organization whose mission is to accelerate adoption of the world’s most abundant energy source. PACE financing specialist Urban Ingenuity was the lead for the team for the pilot projects. Clean Energy Solutions (CESI) was the lead on the market analysis, financial modeling, and HUD regulatory issues for PACE financed solar development on affordable housing. The CivicPACE team focused on four key activities to help open the market for CPACE financing of solar development for nonprofit entities: research, pilot projects, technical assistance, and information dissemination.

• Research Organization: The Solar Foundation, Washington, D.C. (United States)
• Sponsoring Organization: USDOE Office of Energy Efficiency and Renewable Energy (EERE), Solar Energy Technologies Office (EE-4S)
• DOE Contract Number: EE0006917
• OSTI ID: 1474808
• Report Number(s): DE--EE0006917
• Country of Publication: United States
• Language: English

Related Subjects

14 SOLAR ENERGY
29 ENERGY PLANNING, POLICY, AND ECONOMY
PACE financing
nonprofit organizations
solar energy