The New Jersey Economic Development Authority (NJEDA) has begun accepting applications for the Garden State Commercial Property Assessed Clean Energy (C-PACE) Program. This initiative is designed to help commercial property owners finance upgrades that improve energy efficiency, water conservation, renewable energy use, and resiliency.
The C-PACE Program allows property owners to repay investments in eligible projects through a special assessment billed by a participating municipality. This method of repayment is similar to how real property taxes or utility bills are collected. The structure provides lower-cost and longer-term financing options, which can make projects financially viable from the start.
According to NJEDA, “This unique form of financing results in lower-cost, longer-term financing, making it easier for projects to be cashflow-positive from the outset.”
The program aims to encourage private investment from qualified capital providers across New Jersey as part of efforts to decarbonize both existing and new buildings. Through the program, property owners may finance up to 100 percent of eligible improvements for retrofit projects and up to 35 percent of the stabilized value for new construction projects. Projects completed within the past three years may also qualify.
NJEDA serves as the administrator for this program and will review all applications for eligibility before issuing determination letters when appropriate. Each application must identify a qualified capital provider, a qualified technical reviewer, and specify the participating municipality.
Eligible applicants include commercial, industrial, agricultural properties; certain multi-family residential buildings; as well as tax-exempt and nonprofit property owners located in approved municipalities. Details on guidelines and requirements are available on NJEDA’s website.
Applications are being accepted on an ongoing basis for project participation as well as for municipalities, capital providers, and technical reviewers interested in joining the program.
“Applications are now open and will be accepted on a rolling basis,” according to NJEDA.
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