What is C-PACE?

C-PACE is a government policy based on the principle that commercial energy projects - such as installing equipment or improving a building’s heat recovery system – are public benefits similar to sewers, roads, and bridges. Montgomery County passed Council Bill 6-15, Commercial Property Assessed Clean Energy Program (PACE) on March 31, 2015. C-PACE authorizes jurisdictions to allow private capital providers to provide upfront financing to commercial property owners for qualifying improvement projects, and to collect the repayment through annual or semi-annual surcharges on the property’s tax bill. By lowering the property’s energy expenses, C-PACE makes the building more inviting to tenants and, consequently, more valuable.