C-PACE Program: Helping Businesses Invest In Energy Efficiency
The Montana Commercial Property Assessed Capital Enhancements program is a financing tool that can help Montana businesses save money through energy efficiency upgrades, renewable energy investments, or water conservation. C-PACE financing is a suitable option for farms, commercial office buildings, nonprofit organizations and multi-tenant buildings. Common investments include solar panels, HVAC systems, lighting, motors and more.
Regional community and economic development organizations, such as the Great Northern Development Corp., see the potential of C-PACE to facilitate revitalization and business development efforts and are working to bring the program to businesses in northeast Montana.
“We see strong potential for this program to spark new interest in revitalizing commercial buildings throughout our region,” said Tori Matejovsky, executive director of GNDC. “Getting C-PACE approved in our six-county region gives property owners a practical way to invest in critical upgrades (and realize savings from energy efficiency) without carrying the entire cost burden up front. This can be a game-changer for communities that want to preserve and modernize their existing buildings.” To date, 23 local governments in Montana have approved the program, making more than 70 percent of Montana commercial buildings eligible for C-PACE financing.
For property owners to access the program, counties must pass a resolution to create a C-PACE district. Once a district is formed, property owners work with a private lender of their choice to obtain financing for energy-saving, renewable energy, or resiliency projects.
Instead of paying the loan back like a regular bank loan, the repayment is made through a special assessment on the owner’s property tax bill (typically over 20-30 years). The Montana Facility Finance Authority, which oversees the Montana PACE program, helps manage the process and ensures that the funds collected through the county- level property tax system are distributed to the lender.
The loan remains with the property, not the owner, which means that if the property is sold, the new owner will continue the payments via the property tax line item.
Starting in October 2025, Montana’s C-PACE program, also known as the Last Best PACE Program, will allow resiliency projects to be financed under the program.
Resiliency measures can include fire, water, and wind protection as well as indoor air quality and certain public safety measures.
This year, Montana’s C-PACE program won a national award for Innovative Deal of the Year by PACENation. For more information about the C-PACE program, contact the Program Manager at 406-444-3367 or visit https://commerce.mt.gov/ Business/Programs-and-Services/ CPACE/.
