Local Option - Commercial PACE Financing (Connecticut)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Connecticut

Name Local Option - Commercial PACE Financing
Incentive Type PACE Financing
Applicable Sector Commercial, Industrial, Multi-Family Residential, Low-Income Residential
Eligible Technologies Lighting, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Siding, Roofs, Motor-ASDs/VSDs, Processing and Manufacturing Equipment, Comprehensive Measures/Whole Building, Custom/Others pending approval, CHP/Cogeneration, 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, Small Hydroelectric, Fuel Cells using Renewable Fuels, Other Distributed Generation Technologies, Yes; specific technologies not identified, LED Lighting
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs

Start Date 10/2012

Terms Locally determined; 20-year payback term
Program Administrator Clean Enegy Finance and Investment Authority
Website http://www.c-pace.com/
Date added to DSIRE 2012-10-12
Last DSIRE Review 2014-12-12

References DSIRE[1]


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. Please see C-PACE Program Guidebook for more information about the program.

Incentive Contact

Contact Name Jessica Bailey
Department Clean Energy Finance and Investment Authority

Address 865 Brook Street

Place Rocky Hill, Connecticut
Zip/Postal Code 06067
Phone (860) 563-0015

Email jessica.bailey@ctcleanenergy.com
Website http://www.ctcleanenergy.com/

Authorities (Please contact the if there are any file problems.)

Authority 1: Conn. Gen. Stat. § 7-121n
Date Effective 2011-07-01
Date Enacted 2011-07-01

Authority 2: S.B. 501
Date Effective 2012-06-15
Date Enacted 2012-06-15

Authority 3: Conn. Gen. Stat. § 16a-40g

Authority 4: H.B. 6472

Date Enacted 2013-06-06

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"