12 Jan Smart Building and Other Energy Improvements More Attainable through Alternative Finance Tools
Expensive energy improvements are now easier to fund using options such as Commercial Property Assessed Clean Energy (C-PACE) programs. Both services provide building owners access to funding for energy-related capital improvements without going through the process of requesting corporate capital dollars.
Facilities managers know getting funding for energy projects is often the greatest obstacle to saving energy. Building energy efficiency improvements such as smart buildings, lighting controls, and LED lighting can generate significant energy and cost savings, but getting the cash can require a capital procurement process which is lengthy and involved. Because dollars for these improvements often compete with other corporate investments, they can be rejected because of higher priorities, despite compelling benefits.
C-PACE funding allows building owners to avoid the hassles of capital funding procurement while still receiving funding repaid through expense, not capital dollars. These programs are designed to ensure annual energy savings dollars exceed annual payments; guaranteeing an ROI which meets investment grade returns.
Albireo Energy has partnered with Counterpointe Sustainable Real Estate to make C-PACE financing more readily available to their clients. Active in 24 states, C-PACE programs offer 100% financing for energy improvements, including building controls and smart building systems, through a public-private partnership. The programs allow for the repayment of funds provided for this project via property tax assessments by the local municipality. C-PACE financing also allows property owners to capture eligible rebates, incentives, and tax credits, adding more value to the upgrade.