Green loan program for Lee, Ogle, Whiteside commercial building owners

C-PACE offers fixed rate funding for energy-efficient investments, Whiteside economic development director says

Illinois Energy Conservation Authority's C-PACE program logo

MORRISON – Owners of commercial businesses and contractors in Lee, Ogle and Whiteside counties have a new incentive for going green.

All three counties recently opted to participate in the Commercial Property Assessed Clean Energy financing program, or C-PACE.

C-PACE provides long-term, fixed-rate funding to private building owners for energy efficiency, renewable energy, water conservation, electric vehicle charging and resiliency projects to be installed in existing or new commercial properties.

The program will be administered by the nonprofit Illinois Energy Conservation Authority.

C-PACE financing, available in 37 states and the District of Columbia, stimulates local economies by funding the upfront capital for PACE projects that may lower operating costs, generate clean energy, instill resiliency and promote water use conservation in commercial properties.

“We are always looking for ways to assist our businesses, and C-PACE is clearly an innovative financing tool that will help business that are incorporating clean, efficient energy solutions in their new or renovated facilities projects,” Gary Camarano, the county’s economic development director and enterprise zone administrator, said in a news release Tuesday announcing the program’s availability.

“Giving them the ability to receive lower interest rates and longer pay-backs for clean and efficient energy investments, is a win for all involved - the businesses, the community and the environment.”

In many cases, the energy savings will be more than the loan payments, said Andy Shaw, who is an administrator of the Lee Ogle Enterprise Zone and a staff member at the Blackhawk Hills Regional Council.

“Old buildings are just leaky,” Shaw said on Tuesday, noting that the program can benefit all kinds of existing structures, as well as those under construction.

Contractors are advised to learn about the program so they can pass on that information to business owners who may be looking for cheaper ways to finance their projects, he said, adding that C-PACE loan terms typically run for 20 years or more, far longer than most commercial loans.

Whiteside is the latest county to join the program; Lee and Ogle signed on within the last six months or so. Because it is so new to the region, no local projects have signed up yet, although several have expressed interest, Shaw said.

A webcast for those interested in learning more about the program is in the works; details on when it will be available will be posted at www.iecapace.org, where more information C-PACE and how business owners, contractors and capital providers can participate can be found.

Webcast details also will be posted whitesidecounty.org.

According to www.iecapace.org:

Compared to traditional construction financing, C-PACE allows building owners to make needed energy efficient capital improvements to their properties, tackle deferred maintenance and “monetize” operational efficiencies.

In addition, energy efficiency and clean energy improvements reduce a property’s reliance on the grid and reduce a property’s carbon footprint.

The resulting upgrades enhance both the net operating income and the value of the property.

Key benefits to property owners include:

• No money out of pocket: 100% financing, including hard and soft costs.

• Long-term, fixed interest rate financing (up to 30 years) resulting in lower annual payments.

• Typically cash flow positive within the first year.

• Property owner may pass through C-PACE Assessment to tenants (if allowed by lease.

• Reduces capital expenditure budget - upgrades paid through operating savings.

• Eligible measures cover broad capital and facility improvement needs.

• Extends building lifespan while improving comfort.

• C-PACE assessment transfers upon sale to the next property owner (“runs with the land”).

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Kathleen Schultz

Kathleen A. Schultz

Kathleen Schultz is a Sterling native with 40 years of reporting and editing experience in Arizona, California, Montana and Illinois.