Skip Navigation

The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook
Connecticut

Connecticut

Incentives/Policies for Renewables & Efficiency

Printable Version
Local Option - Commercial PACE Financing   

Last DSIRE Review: 07/01/2013
Program Overview:
State: Connecticut
Incentive Type: PACE Financing
Eligible Efficiency Technologies: Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, CHP/Cogeneration, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Siding, Roofs, Motor VFDs, Processing and Manufacturing Equipment, Comprehensive Measures/Whole Building, Custom/Others pending approval, Unspecified Technologies, Data Center Equipment, LED Lighting, Other Measures (locally determined)
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration, Locally determined, Small Hydroelectric, Fuel Cells using Renewable Fuels, Other Distributed Generation Technologies, Geothermal Direct-Use
Applicable Sectors: Commercial, Industrial, Multi-Family Residential, Low-Income Residential
Terms:Locally determined; 20-year payback term
Start Date:10/2012
Web Site: http://www.c-pace.com/
Authority 1:
Date Enacted:
Date Effective:
Conn. Gen. Stat. § 7-121n
07/01/2011
07/01/2011
Authority 2:
Date Enacted:
Date Effective:
S.B. 501
06/15/2012
06/15/2012
Authority 3:
Conn. Gen. Stat. § 16a-40g
Authority 4:
Date Enacted:
H.B. 6472
6/6/2013
Summary:

Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.

In June 2012, Connecticut passed legislation enabling Commercial Property Assessed Clean Energy financing (C-PACE), targeting commercial, industrial and multifamily property owners.  C-PACE is a financial policy tool that allows property owners to finance qualifying energy efficiency and clean energy improvements on their properties through a special assessment on the property tax bill, which is repaid over a period of years (up to 20 years).  Connecticut's C-PACE program is “owner-arranged,” meaning the property owner contracts directly with a private capital provider to obtain financing.  The special assessment (also called a lien) on the property automatically transfers to the next owner in the event of a sale or transfer of ownership.  The lien is senior to a mortgage, although it is non-accelerated, meaning in the event of default, only the payments in arrears would come due.

To participate in C-PACE financing, interested property owners must:

  • Be located in a participating municipality. C-PACE maintains a list of participating municipalities.  Interested property owners should contact CEFIA if their municipality is not on the list of participating municipalities.
  • Work with an approved energy professional (such as an auditor or contractor) to identify eligible projects.  CEFIA will maintain a list of approved contractors.  In general, improvements must be permanently affixed to the property and should either lower the building’s energy consumption or produce clean energy.
  • Apply for financing via CEFIA's C-PACE web site.  If approved, CEFIA will place a lien on the property and financing will become available. Property owners repay the financing via the local property tax bills over the course of 20 years.
  • Obtain written consent of existing mortgage holders.

While there is no financing minimum, PACE financing is best suited for capital improvements above $150,000, due to transaction costs.

 

 


 
Contact:
  Jessica Bailey
Clean Energy Finance and Investment Authority
865 Brook Street
Rocky Hill, CT 06067
Phone: (860) 563-0015
E-Mail: jessica.bailey@ctcleanenergy.com
Web Site: http://www.ctcleanenergy.com/
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.