Energy Decision # 31 - C-PACE Financing Explained: The Most Misunderstood Tool in Energy Financing

C-PACE financing is one of the most misunderstood tools in commercial and industrial energy project funding — and the senior lien structure is the detail that stops most deals before they start.This is Energy Decision #31 in the complete C&I energy management series from Tactical Energy Group. 100 decisions. Every one that matters.In this episode, Daniel Burke covers:What C-PACE financing actually is and how the property tax assessment mechanism works. Why C-PACE interest rates in the 5% to 10% range annually with up to 20–30 year repayment terms change project economics. The senior lien priority problem — why past-due PACE payments take precedence over your existing mortgage in foreclosure. Why existing lender consent is a gatekeeping requirement, not a formality — and why CMBS-securitized loans present a particularly difficult consent path. The two-layer legislative requirement: state enabling legislation AND local ordinance both required before you can access any program. Loan-to-value caps by state — Minnesota's 20% of assessed value versus Connecticut's 25-year, 100% financing terms. The Delayed Draw structure for projects with $10 million or more in C-PACE funding — and why a 67% reduction in capitalized interest is a material underwriting variable. What happens to your C-PACE assessment when you sell the property — and what buyers actually underwrite. How to verify positive cash flow before you sign: annual energy savings versus annual assessment payment.Who this is for: commercial property owners, facility managers, plant managers, and executives at manufacturing facilities, hospitals, schools, and large commercial operations who are evaluating major energy upgrades and want to understand whether C-PACE financing genuinely improves project economics or just moves complexity around.If you are trying to figure out whether C-PACE financing is the right mechanism to fund your next energy improvement project — or whether your existing capital structure will even allow it — this episode is built for you.Read the full breakdown on C-PACE financing at tac-nrg.comIf you are an Indiana C&I operator actively evaluating this decision, get your free Energy Decision Blueprint at blueprint.tac-nrg.com.Visit tac-nrg.com for more practical tools and the Energy Decision Blueprint for qualified Indiana C&I operators.0:00 – What is C-PACE financing?1:30 – How the property tax assessment repayment mechanism works3:00 – The senior lien priority problem and why lender consent is required4:30 – The two-layer legislative requirement: state and local5:30 – LTV caps, program sizing constraints, and state-by-state variation6:30 – Delayed Draw structure for projects over $10 million7:30 – Transferability at sale and tenant pass-through complexity8:30 – The C-PACE decision checklist