Media contact: Tyniah McDuffie, Communications and Community Engagement Manager
Montgomery County, MD (April 2022) – On March 15, 2022, the Montgomery County Council unanimously passed the Commercial Property Assessed Clean Energy (C-PACE) Financing Amendments legislation (Bill 46-21) that significantly improves and expands C-PACE financing opportunities. With this new legislation, property owners have the opportunity to make their buildings more climate-resilient and energy efficient to help improve operating costs and reduce greenhouse gas emissions.
“This legislation aligns a great incentive structure for commercial property owners with the County’s climate goals,” said Green Bank CEO Tom Deyo. “The County Council’s unanimous vote in favor of these C-PACE amendments shows the commitment of the County to making clean energy and climate solutions more accessible and affordable for all residents and businesses in the County.”
Bill 46-21 makes Montgomery County one of the best markets for climate investing. The bill expands C-PACE project eligibility to include climate resiliency, climate adaptation, water conservation, environmental health and safety upgrades. This new legislation provides for an increase in loan to value ratios, thus allowing property owners to go deeper into affordable financing opportunities.
The Bill also allows eligible projects to be retroactively financed through C-PACE. Commercial properties that have recently had qualifying energy efficiency work done can use C-PACE to shore up reserves, improve cash flow, provide liquidity, and even potentially reduce other lenders’ exposure in the capital stack.
Finally, Montgomery County is keeping itself on the forefront of climate solutions by allowing Power Purchase Agreements (PPAs) to be eligible for C-PACE coverage. Known as a PACE-secured PPA, property owners and renewable energy developers can combine the efficiency of PPAs with the transparency and security of C-PACE. It is a powerful approach for scaling solar energy deployment within a large and active real estate market segment.
C-PACE program guidelines and program terms are available on the Green Bank’s website.
About the Montgomery County Green Bank: The Montgomery County Green Bank is an independent, 501(c)(3) nonprofit dedicated to helping businesses and residents affordably implement energy efficiency and clean energy solutions. The Green Bank supports the County by driving investment into energy efficiency and clean energy through lending and investment partners in the region. These efforts include working with homeowners, renters, and commercial entities of all varieties. For more information, visit www.mcgreenbank.org.