Contractors

Colorado Commercial Property Assessed Clean Energy (C-PACE) is a program that helps building owners access private-sector financing to upgrade their building with energy efficiency, clean energy, and water efficiency improvements. With C-PACE, building owners receive up to 100 percent financing with attractive repayment terms consistent with the useful life of the improvements (up to 25 years). This typically enables them to undertake larger building modernization projects that addresses multiple deficiencies.

In well-designed C-PACE projects, the energy cost savings exceed the PACE payments, creating a cash-flow-positive project. By using C-PACE, building owners can reduce their operating costs, improve the value and competitiveness of their building, meet energy performance goals, and increase their cash flow.

Repayment is facilitated through the County property tax assessment process. A voluntary assessment (similar to a sewer district assessment) is placed on the building owner’s property tax bill. The assessment is repaid over the financing term (up to 25 years) and the annual energy cost savings will, in most cases, exceed the annual assessment payment. As a result such projects are typically cash flow positive in the first year. Because the C-PACE assessment obligation runs with the property, the assessment automatically transfers to the next owner when the property is sold.

The statewide Colorado C-PACE program was launched by Colorado’s New Energy Improvement District (NEID), which was created by the Colorado Legislature in 2014. In 2015 NEID, through a competitive bidding process, selected Sustainable Real Estate Solutions, Inc. (SRS) to be the Colorado C-PACE program administrator.

Visit the Participating Counties page of this website for a current list of counties that participate in the Colorado C-PACE program. The program administrator can accept Pre-Qualification Submission Forms ONLY from owners with properties located in a county that has opted into the Colorado C-PACE program. If you have questions about getting any county to join Colorado C-PACE, email info@copace.com.

While a contractor typically focuses on one or two aspects of energy efficiency or renewable energy, such as lighting, HVAC, or solar, for example, a C-PACE project developer focuses on more comprehensive retrofit projects. These firms have the capability to model various project scenarios for the building, help the building owner choose the financing that best meets their needs, and manage the project from application through close and beyond.

All contractors should be in compliance with Colorado State and local license requirements. In addition, attendance at one of the recurring Colorado C-PACE contractor training workshops is required to become a Colorado C-PACE registered contractor. There is no charge for attending these sessions. Visit the Events page for a calendar of scheduled workshops.

Colorado C-PACE provides regularly scheduled free training workshops for contractors. Visit the Events page for the upcoming schedule or email info@copace.com.

Colorado C-PACE process involves multiple steps that include:

• Contractor training
• Building selection and prequalification
• Preliminary project scoping
• Proposal preparation and review with the owner
• Project scenario development and optimization
• Project technical review
• Financing
• Construction

For more information see the Process Flow Diagrams in the Colorado C-PACE Program Guide.

It depends on the complexity of the project. Single ECMs take just a few days. Complex projects that require audits and/or detailed engineering can take 6 to 8 weeks.

Timeframes are project-specific and depend on the number of parties involved. In a C-PACE project, the contractor, mortgage holder, and capital provider establish their own schedules with the building owner. Once a project has been approved for financing, it typically takes an average of 60 days to close.

Yes.

After a project has been reviewed by the program administrator and approved by the building owner and mortgage holder (if any), participating capital providers are offered the opportunity to finance the project. The capital provider (selected by the owner) will review the project documentation (provided by the program administrator and the owner), prepare a financing agreement, and schedule a closing. Funds to initiate construction will be disbursed as provided in the financing agreement funds disbursement schedule.

The SIR tells all stakeholders whether a project will be cash-flow-positive. It is calculated by dividing the projected energy cost savings over the finance term by the total installed cost of the project, including the cost of equipment, installation, and financing.

While the Colorado C-PACE Statute does not require any SIR criteria, the program strongly encourages projects with an SIR>1 for the following reasons:

• Mortgage holders will be more likely to provide consent for projects that show positive cash flow
• Capital providers will look favorably on projects that show positive cash flow
• In general, the higher the SIR, the greater the demonstrated environmental benefits of the project, helping to promote the goals for the Colorado C-PACE program set forth in the C-PACE Statute.

The following list of typical, proven energy efficiency, renewable energy, resiliency and water conservation technologies is intended as a reference. The program administrator will review other proposed improvements on a case-by-case basis.

Energy efficiency

• Automated building controls (BMS, EMS)
• Boilers, chillers and furnaces
• Building envelope (insulation, glazing, windows, etc.)
• High efficiency lighting
• Hot water heating systems
• HVAC upgrades
• New roof (if it will result in energy savings)
• Variable speed drives on motors, pumps and fans

Renewable energy

• Combined heat and power (CHP) systems
• Fuel cells
• Geothermal systems
• Hydroelectric systems
• Recycled energy
• Roof (if used to support a solar PV system)
• Small wind systems
• Solar PV
• Solar thermal
• Waste heat recovery

Water conservation

• Irrigation systems
• Low-flow fixtures (faucets, toilets, etc.)

Resiliency improvements

• Increases a building’s structural resiliency for seismic events
• Improves indoor air quality
• Improves wind or fire resistance
• Improves stormwater quality or reduces on/off-site risk of flash flooding
• Improves the ability of a building to withstand an electrical outage
• Reduces/mitigates urban heat island effect or the effects of extreme heat

Other eligible expenses

• Commissioning costs
• Construction costs related to an eligible improvement
• Energy audit costs
• Engineering and design expenses
• Measurement and verification costs
• Permit fees
• Renewable energy feasibility study costs

This list is not comprehensive. Any improvements that result in utility cost savings and meet other program criteria, will be considered under Colorado C-PACE.  See the C-PACE Program Guide, Section 2.B. Eligible Projects, for more information.

A solar PV feasibility study must be prepared for any project that includes a solar PV installation. For multi-ECM projects, the contractor providing the non-solar ECMs should refer to the Audit Requirements section of the Colorado C-PACE Program Guide. The methodology used for the savings projections are determined during the project development stage. In most cases, an ASHRAE Level I will suffice. For single ECMs such as a boiler replacement, the required documentation can be less comprehensive; however, it should facilitate an SIR calculation.

As is the case for all new and innovative programs, we anticipate a learning curve. Therefore, the program administrator will provide tools and support services to streamline the project submission, review and approval process. Regardless of the feasibility study and/or audit level, energy use data collection should comply with the ASTM E2797-15 Building Energy Performance Assessment (BEPA) Standard.

Three years of utility data is preferred with a minimum of one year, during which time no major renovations should have taken place.  For more information, email info@copace.com.

Yes. These costs are added to the costs of the solar installation and will reduce the SIR.

All roof-mounted systems require an assessment and sign-off by a roofing contractor and a structural engineer. For more information refer to the Solar Feasibility. Refer to the Colorado C-PACE Program Guide for more information or email info@copace.com.

Yes. Since the energy savings are projected and future weather conditions are unknown, energy savings are projected using average conditions. These projections create baselines for the status quo (which assumes ECMs have not been installed) and for the projected case (which assumes the recommended ECMs have been installed).

While the default electricity/fuel-cost escalation factors, which are based on industry best practice, should be used, the program administrator will consider higher factors if the contractor submits the rationale for, and the calculations used, to arrive at a different cost escalation factor.

Yes, but these savings must be directly related to the projected solar energy production.

Yes, although the default system performance degradation factor, which is based on industry best practice, should be used. To use a lower factor, the contractor must submit a rationale for, and the calculations used, to arrive at a different performance degradation factor.

Yes.

Yes, but there are hurdles. First, the owner would have to agree to a proposal that is not cash-flow positive. Next, the mortgage holder will have to consent. This should be discussed early in the process to minimize the chance that a project will fail after it has been developed.

In some cases, depending on the roof and solar PV system features, tax benefits may be applicable to the roof upgrade or a portion of the roof upgrade and could potentially be included in the projected economic analysis.  However, in all cases, the building owner(s) should prepare to consult a tax accountant/attorney to more accurately identify proposed tax benefit values.

The value of the MACRS needs to be provided by the prospective owner or his/her accountant.

There are many factors that can be adjusted, including cost, anticipated energy production, the potential use of tax credits, MACRS depreciation, and utility incentives. In addition, an owner can directly invest in a project to reduce the financed amount and thereby increase the SIR. The program administrator can model different scenarios to find one that will appeal to the owner and the mortgage holder.

The cost of the inverter (extended) warranty should be included in the cost of the project.

Yes, the program administrator can and will assist in the preparation of a Pre-Qualification Submission Form, if needed.

Yes. For more information, refer to the Solar Feasibility Study section in the Colorado C-PACE Program Guide or email info@copace.com.

Yes. The program administrator routinely attends meetings with building owners and their contractors to support the program and respond to C-PACE related questions.

0.5 percent.  A proposed de-rate factor that is less than 0.05 percent must be supported by data from the system’s manufacturer. In consultation with the solar contractor, any such proposal will be reviewed and either approved, modified or rejected by the program administrator.

Yes.

A project commissioning effort is intended to confirm that the proposed improvements have been installed according to manufacturers’ guidelines and that the system will perform as expected. The program recommends that contractors prepare a Commissioning Plan, perform commissioning, prepare a Commissioning Report and submit these to the owner and the program administrator for more complex projects. It should include as-built drawings, O&M manuals for each improvement, and a narrative that is appropriate for the size and complexity of the project.

Yes.

The program administrator relies on cut-sheet data, which is combined with other project data included in the solar feasibility study, to confirm a project’s eligibility.

Colorado C-PACE is designed to be self-sustaining. To ensure that the program fees charged to program participants are sufficient to cover the operating costs associated with administering the program, a one-time fee equal to 2.5% of the project finance amount (not to exceed $75,000 per project, with a minimum fee of $5,000 per project) will be assigned to each C-PACE project. The program administration fee is typically included in the total financed amount.

Colorado state statute requires each property owner to submit a commitment of title insurance (satisfied by a limited property information guarantee (LPIG)) ordered by the program administrator. The cost of the LPIG title product is available in the Resources section of the program website, and this cost will be included in the project finance amount. The District will also include a $600 closing fee and recording fees. Capital providers may also include legal or closing fees specific to each project that will be included in the project finance amount.

In general, ineligible measures are those that a) are not permanently affixed to the property and b) cannot be expected to save energy or water or generate renewable energy. Read our technical brief for a more detailed definition of ineligible measures and whether they can be included in the C-PACE financing.

The Colorado C-PACE program encourages participation from rural communities. Read this technical brief for information on how to proceed in an area with no zoning laws.

They may be. Read this technical brief for detailed information, or contact the program administrator directly for an evaluation of your building.

Yes. New construction and gut-rehab projects are eligible for C-PACE financing within 24 months from the certificate of occupancy. Refer to the Program Guide for additional details.

Colorado Commercial Property Assessed Clean Energy (C-PACE) is a program that helps building owners access private-sector financing to upgrade their building with energy efficiency, clean energy, and water efficiency improvements. With C-PACE, building owners receive up to 100 percent financing with attractive repayment terms consistent with the useful life of the improvements (up to 25 years). This typically enables them to undertake larger building modernization projects that addresses multiple deficiencies.

In well-designed C-PACE projects, the energy cost savings exceed the PACE payments, creating a cash-flow-positive project. By using C-PACE, building owners can reduce their operating costs, improve the value and competitiveness of their building, meet energy performance goals, and increase their cash flow.

Repayment is facilitated through the County property tax assessment process. A voluntary assessment (similar to a sewer district assessment) is placed on the building owner’s property tax bill. The assessment is repaid over the financing term (up to 25 years) and the annual energy cost savings will, in most cases, exceed the annual assessment payment. As a result such projects are typically cash flow positive in the first year. Because the C-PACE assessment obligation runs with the property, the assessment automatically transfers to the next owner when the property is sold.

The statewide Colorado C-PACE program was launched by Colorado’s New Energy Improvement District (NEID), which was created by the Colorado Legislature in 2014. In 2015 NEID, through a competitive bidding process, selected Sustainable Real Estate Solutions, Inc. (SRS) to be the Colorado C-PACE program administrator.

Visit the Participating Counties page of this website for a current list of counties that participate in the Colorado C-PACE program. The program administrator can accept Pre-Qualification Submission Forms ONLY from owners with properties located in a county that has opted into the Colorado C-PACE program. If you have questions about getting any county to join Colorado C-PACE, email info@copace.com.

While a contractor typically focuses on one or two aspects of energy efficiency or renewable energy, such as lighting, HVAC, or solar, for example, a C-PACE project developer focuses on more comprehensive retrofit projects. These firms have the capability to model various project scenarios for the building, help the building owner choose the financing that best meets their needs, and manage the project from application through close and beyond.

All contractors should be in compliance with Colorado State and local license requirements. In addition, attendance at one of the recurring Colorado C-PACE contractor training workshops is required to become a Colorado C-PACE registered contractor. There is no charge for attending these sessions. Visit the Events page for a calendar of scheduled workshops.

Colorado C-PACE provides regularly scheduled free training workshops for contractors. Visit the Events page for the upcoming schedule or email info@copace.com.

Colorado C-PACE process involves multiple steps that include:

• Contractor training
• Building selection and prequalification
• Preliminary project scoping
• Proposal preparation and review with the owner
• Project scenario development and optimization
• Project technical review
• Financing
• Construction

For more information see the Process Flow Diagrams in the Colorado C-PACE Program Guide.

It depends on the complexity of the project. Single ECMs take just a few days. Complex projects that require audits and/or detailed engineering can take 6 to 8 weeks.

Timeframes are project-specific and depend on the number of parties involved. In a C-PACE project, the contractor, mortgage holder, and capital provider establish their own schedules with the building owner. Once a project has been approved for financing, it typically takes an average of 60 days to close.

Yes.

After a project has been reviewed by the program administrator and approved by the building owner and mortgage holder (if any), participating capital providers are offered the opportunity to finance the project. The capital provider (selected by the owner) will review the project documentation (provided by the program administrator and the owner), prepare a financing agreement, and schedule a closing. Funds to initiate construction will be disbursed as provided in the financing agreement funds disbursement schedule.

The SIR tells all stakeholders whether a project will be cash-flow-positive. It is calculated by dividing the projected energy cost savings over the finance term by the total installed cost of the project, including the cost of equipment, installation, and financing.

While the Colorado C-PACE Statute does not require any SIR criteria, the program strongly encourages projects with an SIR>1 for the following reasons:

• Mortgage holders will be more likely to provide consent for projects that show positive cash flow
• Capital providers will look favorably on projects that show positive cash flow
• In general, the higher the SIR, the greater the demonstrated environmental benefits of the project, helping to promote the goals for the Colorado C-PACE program set forth in the C-PACE Statute.

The methodology for the savings projections is determined during the project development stage. In most cases, an ASHRAE Level I or II Audit will suffice. For single ECMs, such as a boiler replacement, the required documentation can be less comprehensive; however, it should facilitate an SIR calculation. For more information, refer to the C-PACE Program Guide.

As is the case for all new programs, a learning curve is expected. Therefore, the program administrator will provide tools and support to streamline the project submission, review and approval process. Regardless of the audit level, energy use data collection should comply with the ASTM E2797-15 Building Energy Performance Assessment (BEPA) Standard. Refer to Audit Requirements section of the Colorado C-PACE Program Guide.

The following list of typical, proven energy efficiency, renewable energy, resiliency and water conservation technologies is intended as a reference. The program administrator will review other proposed improvements on a case-by-case basis.

Energy efficiency

• Automated building controls (BMS, EMS)
• Boilers, chillers and furnaces
• Building envelope (insulation, glazing, windows, etc.)
• High efficiency lighting
• Hot water heating systems
• HVAC upgrades
• New roof (if it will result in energy savings)
• Variable speed drives on motors, pumps and fans

Renewable energy

• Combined heat and power (CHP) systems
• Fuel cells
• Geothermal systems
• Hydroelectric systems
• Recycled energy
• Roof (if used to support a solar PV system)
• Small wind systems
• Solar PV
• Solar thermal
• Waste heat recovery

Water conservation

• Irrigation systems
• Low-flow fixtures (faucets, toilets, etc.)

Resiliency improvements

• Increases a building’s structural resiliency for seismic events
• Improves indoor air quality
• Improves wind or fire resistance
• Improves stormwater quality or reduces on/off-site risk of flash flooding
• Improves the ability of a building to withstand an electrical outage
• Reduces/mitigates urban heat island effect or the effects of extreme heat

Other eligible expenses

• Commissioning costs
• Construction costs related to an eligible improvement
• Energy audit costs
• Engineering and design expenses
• Measurement and verification costs
• Permit fees
• Renewable energy feasibility study costs

This list is not comprehensive. Any improvements that result in utility cost savings and meet other program criteria, will be considered under Colorado C-PACE.  See the C-PACE Program Guide, Section 2.B. Eligible Projects, for more information.

This scenario requires modeling. For specifics, email info@copace.com.

Three years of utility data is preferred with a minimum of one year, during which time no major renovations should have taken place.  For more information, email info@copace.com.

Yes, provided it is related to a specific ECM. For instance, a roof or structural repair needed to support a solar system would be eligible. However the costs for such work will be added to the costs of the solar installation and these additional costs will reduce the SIR.

The most common include DOE’s eQuest and EnergyPro, although other models such as Trane’s Trace 700 and Carrier’s HAP model are also acceptable.

Yes. Since the energy savings are projected and future weather conditions are unknown, energy savings are projected using average conditions. These projections create baselines for the status quo (which assumes ECMs have not been installed) and for the projected case (which assumes the recommended ECMs have been installed).

Energy savings are calculated over the expected useful life of the specific ECM. In projects that incorporate multiple ECMs, the weighted useful life of the multiple ECMs is calculated and used to determine the maximum allowable finance term.

While the default electricity/fuel-cost escalation factors, which are based on industry best practice, should be used, the program administrator will consider higher factors if the contractor submits the rationale for, and the calculations used, to arrive at a different cost escalation factor.

Yes, although the default system performance degradation factor, which is based on industry best practice, should be used. To use a lower factor, the contractor must submit a rationale for, and the calculations used, to arrive at a different performance degradation factor.

Yes, but there are hurdles. First, the owner would have to agree to a proposal that is not cash-flow positive. Next, the mortgage holder will have to consent. This should be discussed early in the process to minimize the chance that a project will fail after it has been developed.

There are many factors that can be adjusted, including cost, anticipated energy production, the potential use of tax credits, MACRS depreciation, and utility incentives. In addition, an owner can directly invest in a project to reduce the financed amount and thereby increase the SIR. The program administrator can model different scenarios to find one that will appeal to the owner and the mortgage holder.

Cut sheets provide a wealth of data from the manufacturer of the ECM.  This data, when combined with other project data, is used by the program administrator to confirm project eligibility.

Yes, the program administrator can and will assist in the preparation of a Pre-Qualification Submission Form, if needed.

Yes. The program administrator routinely attends meetings with building owners and their contractors to support the program and respond to C-PACE related questions.

A project commissioning effort is intended to confirm that the proposed improvements have been installed according to manufacturers’ guidelines and that the system will perform as expected. The program recommends that contractors prepare a Commissioning Plan, perform commissioning, prepare a Commissioning Report and submit these to the owner and the program administrator for more complex projects. It should include as-built drawings, O&M manuals for each improvement, and a narrative that is appropriate for the size and complexity of the project.

Colorado C-PACE is designed to be self-sustaining. To ensure that the program fees charged to program participants are sufficient to cover the operating costs associated with administering the program, a one-time fee equal to 2.5% of the project finance amount (not to exceed $75,000 per project, with a minimum fee of $5,000 per project) will be assigned to each C-PACE project. The program administration fee is typically included in the total financed amount.

Colorado state statute requires each property owner to submit a commitment of title insurance (satisfied by a limited property information guarantee (LPIG)) ordered by the program administrator. The cost of the LPIG title product is available in the Resources section of the program website, and this cost will be included in the project finance amount. The District will also include a $600 closing fee and recording fees. Capital providers may also include legal or closing fees specific to each project that will be included in the project finance amount.

In general, ineligible measures are those that a) are not permanently affixed to the property and b) cannot be expected to save energy or water or generate renewable energy. Read our technical brief for a more detailed definition of ineligible measures and whether they can be included in the C-PACE financing.

The Colorado C-PACE program encourages participation from rural communities. Read this technical brief for information on how to proceed in an area with no zoning laws.

They may be. Read this technical brief for detailed information, or contact the program administrator directly for an evaluation of your building.

Beneficial electrification (or strategic electrification) projects are projects that involve the replacement of systems involving direct fossil fuel use (e.g. natural gas, propane, heating oil) with systems using electricity only. Beneficial electrification projects provide a path to buildings and systems supplied with energy from renewable energy production sources as opposed to energy production sources or systems that rely on fossil fuel use, resulting in overall emission reduction.

If a beneficial electrification project is the only improvement being considered, it is subject to the C-PACE statutory requirements and must demonstrate a reduction in energy consumption or an energy cost savings to be eligible. If beneficial electrification represents one of a number of improvements, if the overall project (all improvements collectively) demonstrates a reduction in energy consumption or an energy cost savings, the electrification measure is eligible as part of the portfolio of improvements.

Yes. New construction and gut-rehab projects are eligible for C-PACE financing within 24 months from the certificate of occupancy. Refer to the Program Guide for additional details.