Before the Covid-19 crisis struck, renewable energy was one of America’s fastest-growing industries, rising 100 percent between 2000 and 2018, according to the Center of Climate and Energy Solutions. But, since the coronavirus outbreak, the industry has taken a hit. In March alone, the clean energy sector shed 106,000 jobs — a year’s worth of job gains, gone in a matter of weeks.
With the pandemic’s heavy economical impact on most industries, it’s probable that funding for your current energy project was cut. If this is the case for your business or non-profit, retroactive financing may be your solution.
What is retroactive financing?
In short, retroactive financing is a financing method used to fund projects that are currently in construction but have lost funding. Retroactive means taking effect from a date in the past. So, if your business or non-profit had an energy project that began at a past date during a time when you had funding secured, and now the funding is no longer there, you may be interested in this finance method.
So, how do you get funding back? The C-PACE program can help.
What is the C-PACE program?
First, let’s dive into the C-PACE program. C-PACE stands for commercial property-assessed clean energy. It’s a financing structure in which building owners borrow money from energy efficiency, renewable energy, or other projects and make repayments through an assessment on their property tax bill, according to the U.S. Department of Energy.
Similar to other project financing methods, C-PACE borrows capital from C-PACE providers to pay for the construction costs and install energy efficiency or renewable energy improvements for the new energy system. C-PACE allows business owners to plan smartly with a flexible budget at the starting phase of constructing new energy systems and ensures enough capital to invest in business development. For more information check out our blog post, “What is C-PACE Financing?”
How does C-PACE relate to retroactive funding?
Our team can help you use C-PACE to obtain retroactive funding. If you have started a qualifying energy project and lost funding to complete it, you can secure the funds to finish the job. Retroactive financing of C-PACE eligible projects can help commercial property owners and developers shore up capital stacks and access liquidity at any point in the economic cycle.
In simpler terms, if you did an HVAC project last year for $100,000 cash because you couldn’t get a bank loan, we can work with PACE to give you that money back so you can use it now, plus another $200,000 for a solar array and LED lights, and you can pay it all off over time with portions of the energy savings you generate.
Types of funding C-PACE Funding
What types of funding does C-PACE offer? Check out the 3 primary options listed below and get a better idea of how C-PACE can help your company.
1. New Project Funding
C-PACE provides funding for qualifying new construction and new retrofit energy projects. Funding is non-recourse and non-accelerated. Check out this blog post for more information.
2. Gap Funding
C-PACE can act as a fast, secure funding source for future energy projects that have not been funded with cash, equity, or debt
3. Bridge Funding
C-PACE can also provide temporary, intermediate funding intended to cover short-term project expenses until long-term financing is secured.
For more information check out our financial assistance page.
Take Care of Your Business
If your company is struggling, now is the time to act, and EnergyLink’s team is here to help you get through these difficult times with a free, no-obligation financial consultation. Contact us to schedule a free consultation today!