MinnPACE Upgrades are Game Changers
From a State of 20 to 30: Minnesota’s C-PACE Program Sees Comprehensive Upgrades
Minnesota emerged as a pioneer in 2010, being among the first states to introduce the Commerical Property Assessed Clean Energy (C-PACE) program. Administered statewide by MinnPACE, this program has been a leader in clean energy financing for the past fourteen years. By 2023, Minnesota had injected $291 Million into C-PACE leans, marking the program’s 6th highest utilization nationwide. Often dubbed the “state of 20’s” by MinnPACE, the program allowed for loans amounting to 20% of the property’s value, to be repaid over 20 years, with an energy savings payback within 20 years.
Times have changed.
In 2024, stakeholders championed four pivotal amendments to Minnesota’s C-PACE legislation, enhancing the program’s eligibility to align with national best practices:
Maximum Financing Extended: The maximum financing term now extends to 30 years.
Loan-to-Value (LTV) Raised: The Loan-to-Vale (LTV) limit for improved properties has been raised from 20% to 30%.
Energy improvements vs Cost-Effectiveness Standard: Eliminating the “cost-effectiveness” standard will eradicate constraints on overall project sustainability achievements. This alteration will empower initiatives such as building electrification and decarbonization, facilitating the transition towards more environmentally friendly and resilient infrastructure.
Building Resiliency as an Eligible Financing Measure: Acknowledging the escalating significance of climate resilience, building resiliency has been added as an eligible financing measure. This measure will not only enhance the safety and durability of buildings but also contribute to reducing greenhouse gas emissions.
What is C-PACE and MinnPACE:
Minnesota C-PACE Financing
C-PACE financing is transforming communities by enabling commercial property owners to make their businesses more efficient and resilient. The unique finance structure allows for 100% financing (including hard and soft costs) with payments rolled into property taxes through a special assessment.
How MinnPACE Works
Through state legislation, the Saint Paul Port Authority is designated as the C-PACE program administrator with a statewide reach. Marketed as MinnPACE, the Port Authority works directly with Minnesota cities and counties to establish joint powers agreements. These agreements give MinnPACE the authority to place C-PACE assessments on properties where the owner has consented to the agreement.
Benefits
– 100% financing with no upfront costs
– Long-term, fixed-rate financing (up to 30 years)
– Less energy consumption and lower utility bills
– Increased property values and enhanced marketability
– Ability to pass payments onto tenants
– Ability to transfer assessment to new owners in the case of a sale
– Ability to pair with rebates and tax incentives to accelerate the ROI
Contact Us
Holly Huston, Vice President
651-204-6216