You have an old Colorado building, and you want to make it as energy-efficient as possible. How do you start the process? How will you pay for it?
Commercial Property Assessed Clean Energy (C-PACE) is an excellent option to get your project rolling quickly and cost-effectively. Although the process can be a bit overwhelming, DMA Engineering helps it go as smoothly as possible.
We understand the challenges of the process because we’ve been through it many times. In this article, we’ll explain what C-PACE is, how to use it successfully, and tips for avoiding common pitfalls.
What Is C-PACE?
C-PACE is a financing structure in which a building owner borrows money to spend on increasing a building’s energy efficiency, renewable energy, or other projects. The owner then makes repayment through an assessment on their property tax bill.
Financing for C-PACE comes from private investors through capital investments, meaning the program is not taxpayer-funded. The arrangement is monitored and guided by state legislation and government agencies.
Building owners are sometimes surprised to learn that C-PACE financing follows the building, not the owner. It stays with the property even if it is sold, which can facilitate long-term investments in improving and maintaining the building’s performance over time.
C-PACE Program Benefits
The C-PACE financing model is designed to overcome the upfront cost barrier associated with implementing energy efficiency and renewable energy projects in commercial buildings. Here are some benefits you can expect from a C-PACE program:
- Long-Term Financing
- Property-Tax-Based Repayment
- Non-Recourse Financing
- Energy Saving Improvements
At DMA Engineering, we recommend C-PACE because it can help you take advantage of energy-efficient measures without blowing your budget. It’s one of the best ways to ensure your building will become more eco-friendly and remain a good community citizen for years to come.
Examples of Successful Colorado C-PACE Projects
DMA Engineering has led more than 100 successful projects to increase building efficiency in Colorado. Here’s an example showing the transformative power of C-PACE.
In Aurora, Colorado, we worked on a Medical Office C-PACE project to upgrade a 113,568-square-foot building erected in 1992. We helped the owner secure funding for a complete HVAC system upgrade and a super-efficient building automation system.
As a result, energy consumption was reduced significantly, and the building owner gained outstanding control of the air movement and temperature. Innovations like automated nighttime temperature setbacks and monitor economizer controls are ensuring this building remains highly energy efficient.
Getting the Most Out of Commercial Property-Assessed Clean Energy
As a building owner, you can kick off the process by creating a long-term plan for your asset management through a C-PACE energy assessment. Here’s how the process typically works.
DMA Engineering will consult with you to understand your needs and develop your Owner’s Project Requirements (OPR). This involves walking through your building and creating a baseline of building performance and a macro view of your project using tools like the Energy Star Portfolio Manager.
Next, we’ll help you create several energy efficiency scenarios designed to address your OPR and goals for the building. This step requires extensive expertise in the field because you’ll need to think broadly about the wide-ranging environmental and budgetary impacts of the project.
Usually, there is only one round of C-PACE funding. Your project proposal will need to reflect substantial improvements to the building to produce measurably positive environmental impacts.
An engineering study will inform and develop the full scope of your project. This includes conducting an engineering analysis of the building, creating a full list of measures, scoping each scenario, developing pricing to implement each scenario, and presenting a full financial analysis.
Below, we’ll explain how DMA Engineering helps you move through the funding and implementation phases of the project.
Avoiding Pitfalls in the Process: How We Help You with C-PACE
DMA Engineering works as your partner as the project moves forward, helping guide it toward success. We’ll finalize all the paperwork, help you secure financing, identify the construction team, conduct commissioning, and provide continuous monitoring of your building’s systems.
During the building phase, we’ll oversee construction to ensure newly installed systems and features fully meet your expectations. Our experts will scrutinize every system involved in the project for proper optimization and performance.
Part of our partnership is guaranteeing that we’ll stay committed to the project long beyond the initial phases. We’ll stay on the project for three years as we oversee your energy savings, called continuous commissioning. This is the key to ensuring your building will remain a productive member of society.
As you can see, arranging a C-PACE project is a complex undertaking that calls for specific skills and knowledge. The average building owner doesn’t possess enough industry background, mechanical engineering skills, or experience with securing funding for energy-efficient upgrades.
Your Partnership with DMA Engineering
We’re happy to share our C-PACE processes and turnkey solutions with you. To see if this option is the right fit, start with a commercial energy audit to understand your building’s current status and limitations.
DMA Engineering offers a free quick guide covering the essential analysis components of an energy audit, which is accessible at the following link: Energy Audit Quick Guide
Please contact DMA Engineering today if you’d like to upgrade your building to reach greater energy efficiency via C-PACE.