Energy Select Becomes a Maryland C-PACE Registered Contractor
Leonardtown-based, Energy Select, is now the only Maryland C-PACE registered contractor in Southern Maryland. Commercial Property Assessed Clean Energy (C-PACE ) focuses on making commercial buildings more energy-efficient. This, in turn, allows county governments to create jobs, retain businesses, and help the local economy.
Government C-PACE policies are structured in such a way as to consider commercial and non-profit energy projects to be just as beneficial to the public as other vital infrastructure. C-PACE allows counties to access funding from private capital. This upfront financing enables commercial property owners to make any necessary energy efficiencies. The improvements are repaid via surcharges on property taxes. This means that the company does not accrue any debt for energy production and efficiency improvements.
C-PACE can help to make a building much more inviting to tenants as it will benefit from lower energy costs. This, in turn, makes the facility more valuable. There are no upfront costs with C-PACE, and 100% of the project is funded. Repayments are made via the surcharge over typically 20 years with no penalties for earlier payment.
Scientific American magazine has named C-PACE as one of the Top Twenty World Changing ideas. There is a good reason for that.
"For the past ten years, we've been working with businesses and non-profits to improve their energy savings.”, says Steven Tripp, Director of Marketing and Sales at Energy Select. “The number one obstacle organizations face is how to pay for the improvements. The C-PACE program makes it an easy decision for them, especially for tight budgets."
The benefits of C-PACE are numerous. Environmentally, C-PACE assists states and local governments in reaching energy and water conservation goals as well as reducing carbon emissions. It also helps states to become Clean Power Plan compliant. From an economic standpoint, the benefits of utility bill savings for building owners and local job creation cannot be underestimated. Perhaps most attractively, however, is the fact that C-PACE financing does not place any burden on taxpayers, 100% funded through private capital.
The C-PACE program can be especially beneficial to for-profit organizations as they can avoid large capital expenditures while immediately realizing the benefits. Aside from the apparent ongoing cost savings, companies can also receive tax benefits such as the solar energy Federal Income Tax Credit and Accelerated Depreciation Benefits (MACRS).
Non-profits that do not have the same tax liabilities as other organizations can partner with Energy Select to arrange short-term leases with tax investors. This arrangement allows the lease to transfer to the non-profit once the tax investor has taken the credit and accelerated depreciation.
Energy Select provides numerous clean energy solutions that qualify for the C-PACE initiative. Namely, Solar Energy Equipment and High-Efficiency Lighting and Building Systems. They also partner with local contractors to provide solutions such as Building Shell or Envelope Improvements. Steven Tripp explains, "Financing can be particularly hard for non-profits. As a C-PACE contractor, we've been able to assemble a team of partners to make these projects work and get the non-profits focusing their money on their mission instead of the electric bill."
More information for the Maryland C-PACE program is at MD-pace.com.