Commercial property assessed clean energy (C-PACE) is a means of financing energy and/or water efficiency, renewable energy, resiliency, or environmental remediation measures in commercial buildings with no up-front cost. C-PACE loans are treated as a tax assessment on the property for the value of the installed equipment, and are repaid through property tax bills. Loan terms are typically 10-20 years in length.

Because a C-PACE loan is a property tax assessment, this means that it remains affixed to the property itself and not to the property owner. In the event that the property is sold, the C-PACE loan becomes the responsibility of the new owner and the prior owner is no longer obligated to make payments. 

C-PACE in Maryland

A Maryland county must first pass legislation that authorizes C-PACE to be made available within the county. To date, 19 of Maryland’s counties have enacted C-PACE-enabling legislation. The Montgomery County C-PACE Program and Prince George’s County C-PACE Program are administered independently. All other counties’ C-PACE programs are administered through MDPACE, which is managed by the Maryland Clean Energy Center.