Services
PACE Program Administrator Interview
Brian J. McCarter, CEO of Sustainable Real Estate Solutions (SRS) at the PACENation Summit held in February 2016. In this interview, he addresses the need for contractor channel outreach, education, and recurring training initiatives to successfully originate projects.
Implementing C-PACE Programs – A Daunting Challenge
2009: First Generation C-PACE:
C-PACE first emerged in California circa 2009 with great expectations. Unfortunately, these “First Generation” programs were unable to originate and finance projects on a repeatable and scalable basis.
2012: Connecticut Green Bank (CGB) and SRS First Generation Program Review:
In view of this unexpected outcome the CGB, in consultation with SRS, undertook a comprehensive review of First Generation programs strengths and weaknesses. The goal was to identify the structural and operational deficiencies that had undermined these early programs and right-structure the industry’s first statewide C-PACE program.
2013: CGB and SRS Launch Second Generation C-PACE:
Based on “lessons learned” from the analysis of First Generation programs, in 2013 CGB and SRS launched the CT C-PACE program. This ground-breaking initiative has established proven best practices that currently serve as the foundation for the most successful C-PACE programs nationwide.
2013-2019 Second Generation C-PACE Results:
Since 2013, the CT C-PACE program has financed approximately 285 projects valued at $153 million. The lessons learned and innovative approach brought to this pioneering initiative has defined the key components of a right-structured program that has proven its ability to originate and finance projects on a repeatable and scalable basis.
Key Components for Successful Launch and Management of C-PACE:
- Government agency sponsorship with program oversight responsibility.
- Sends a strong “program integrity” signal to program participants.
- Independent Program Administrator, reporting to the agency sponsor, with responsibility for project technical underwriting, commissioning and performance measurement and verification.
- Provides systematic Quality Assurance, free of conflicts of interest, to meet the challenge of building owner and mortgage holder skepticism in a project’s projected energy savings and cash flows.
- Open Market access to capital.
- Enables building owners to determine best-fit capital provider for their project.
2016: SRS Launches New Second Generation Programs:
SRS as Program Administrator, further refined second generation program best practices in the design and launch of two new statewide C-PACE programs:
State of Colorado
State of Rhode Island
Moreover, SRS has implemented these hard-won lessons learned in regional/local programs nationwide, such as in the San Francisco Bay area:
and in the County of Multnomah, Oregon, for the Portland Development Commission:
As in most emerging markets there have been valuable lessons learned from First Generation programs that can inform the necessary course corrections that will ensure C-PACE will deliver on its bright promise. These and other “right structured” Second Generation programs are poised to meet the daunting challenge of C-PACE implementation and sustained growth.
Contact us to learn more about how to implement a best practice C-PACE program in your jurisdiction.
Building Owners’ Testimonials
SRS’s PACEworx™ energy efficiency and renewable energy investment underwriting platform enables building owners to confidently:
- Determine the optimized project scenario
- Calculate key financial metrics and projected cash flows
- Obtain mortgage holder consent and close financing.
To hear what building owners are saying, click on the video testimonials below:
Industrial Owner Testimonial
“The C-PACE program allowed me to access low-cost and long-term financing to further support our desire to deploy solar energy and stabilize our energy costs over the long term.”
― Paul Breglio, President, Crest Mechanical
Theater Owner Testimonial
“By taking advantage of the innovations in C-PACE financing, the Bushnell Theater is not only able to make this long-overdue replacement with no up-front expenditure, but we will actually realize a positive cash flow.”
― David Fay, CEO, Bushnell Center
Office Owner Testimonial
Project: HVAC, controls, windows, VFDs
“Energy efficiency is always something we strive for, but due to the size and scope of this particular project, it would not have been possible without C-PACE. The end result will be better comfort for our tenants and a much improved physical asset.”
― Brandon Hall, Principal, Forstone Capital
Recreation Owner Testimonial
Project: Solar PV, LED lighting
“The C-PACE program is so valuable in terms of the financial aspect of putting solar on your roof. Every investment I made whether it was energy efficiency or solar came together in one package and C-PACE financing made that very simple. The analysis was tremendous, the people were wonderful and the process was very quick.”
― Peter Corbett, President & CEO, Insports
YMCA Owner Testimonial
Project: Combined Heat & Power (CHP)
“If you can have a better system that is cleaner, more efficient, that saves you money – that’s exciting. There was no out-of-pocket expense and no recurring expense because the savings from this new energy source will pay for the financing. This isn’t just about the YMCA winning it’s about the community as a whole winning.”
― John Benigni, CEO, Meriden YMCA
Retail Owner Testimonial
Project: Solar PV
“Solar has been a very important goal for many years but we didn’t think it would be possible or affordable for us. Once the C-PACE program came in we saw a big opportunity. C-PACE made it so simple and really worthwhile.”
― Joanna Hunt, Owner, Shagbark Lumber
Church Owner Testimonial
Project: Boiler
“I dread October every year – here we go again I have to turn this furnace on. It got to the point where I had to pray it stayed on. When I found out about C-PACE, I just couldn’t believe that it was true. C-PACE has really come to our rescue. I don’t have to worry about that furnace any longer.”
― Bishop John Thompson & Co-Pastor Jenice Loyd-Thompson, Calvary Temple Center
