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Local Option - Commercial PACE Financing (Connecticut)

Low-Income Residential
Multi-Family Residential
Savings Category 
Heat Pumps
Fuel Cells
Fuel Cells using Renewable Fuels
Solar Water Heat
Program Info
Start Date 


Program Type 
PACE Financing
Clean Energy Finance and Investment Authority

In June 2012, Connecticut passed legislation enabling Commercial Property Assessed Clean Energy financing (C-PACE), targeting commercial, industrial and multifamily property owners. C-PACE is a financial policy tool that allows property owners to finance qualifying energy efficiency and clean energy improvements on their properties through a special assessment on the property tax bill, which is repaid over a period of years (up to 20 years). Connecticut's C-PACE program is “owner-arranged,” meaning the property owner contracts directly with a private capital provider to obtain financing. The special assessment (also called a lien) on the property automatically transfers to the next owner in the event of a sale or transfer of ownership. The lien is senior to a mortgage, although it is non-accelerated, meaning in the event of default, only the payments in arrears would come due.

To participate in C-PACE financing, interested property owners must:

  • Be located in a participating municipality. The first two towns to opt into C-PACE are Bridgeport and Norwalk. CEFIA maintains a list of [ participating municipalities]. Interested property owners should contact CEFIA if their municipality is not on the list of participating municipalities.
  • Work with an approved energy professional (such as an auditor or contractor) to identify eligible projects. CEFIA will maintain a list of approved contractors. In general, improvements must be permanently affixed to the property and should either lower the building’s energy consumption or produce clean energy.
  • Apply for financing via CEFIA's C-PACE web site.* If approved, CEFIA will place a lien on the property and financing will become available. Property owners repay the financing via the local property tax bills over the course of 20 years.
  • Obtain written consent of existing mortgage holders.

While there is no financing minimum, PACE financing is best suited for capital improvements above $150,000, due to transaction costs.

* The online application will be available in early December 2012.