C-PACE Financing Helps Property Owners Save on Energy Costs

Published on December 11, 2025

The City of Fairfax is one of 19 Virginia localities participating in the statewide Commercial Property Assessed Clean Energy financing program. C-PACE financing helps property owners overcome financial barriers that discourage investment in energy and water conservation projects.

C-PACE enables owners of commercial, industrial, nonprofit and multifamily properties (with five or more units) to access long-term, fixed-rate financing for energy efficiency, renewable energy, water conservation, and resiliency improvements. Building improvements financed with C-PACE can be completed with no upfront, out-of-pocket cost and can generate positive cash flow upon completion.

C-PACE projects are financed by private lenders, including specialized C-PACE capital providers and community and regional banking institutions. The financing is repaid through a special assessment on the property tax bill, typically over a term that matches the useful life of the improvements — up to 30 years — and can be transferred to the new owner if the property is sold.

Administered by the Virginia PACE Authority in partnership with Virginia Energy, the program streamlines financing and reduces administrative burden for localities.

Benefits for Property Owners:

• No money out of pocket: 100% financing includes hard and soft costs
• Reduces capital expenditure budget; upgrades paid through operating savings
• Eligible measures cover broad capital and facility improvement needs
• Extends building lifespan while improving comfort.
• Long-term, fixed interest rate financing (up to 35 years) results in lower annual payments.
• Typically cash flow positive within the first year
• Property owners may pass through C-PACE assessment to tenants, if allowed by lease.
• C-PACE assessment transfers upon sale to the next property owner.

To learn how C-PACE can make eligible properties more energy and cost efficient, visit virginiapace.com or email info@virginiapace.com.