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Commercial financing

C-PACE: property-assessed commercial solar financing with no personal guarantee.

Commercial PACE attaches the solar financing obligation to the property, not the business owner. Available in 32 or more states with active programs. Stackable with Section 48E (verify by July 4, 2026 construction start) and MACRS 5-year depreciation.

States with active C-PACE programs as of 2026
32
Typical C-PACE APR range
5
Section 48E commercial ITC base rate stackable with C-PACE
30
Accelerated depreciation schedule stackable with C-PACE and Section 48E
5

Financing detail

Commercial PACE (C-PACE)

Ownership outcome

You own the system

Federal Section 48E applies

Yes -- the third-party owner or commercial entity can claim it

Commercial property owners using C-PACE to fund a solar installation retain eligibility for the Section 48E ITC (30% base, construction must begin by July 4, 2026) when they own the system. C-PACE financing and Section 48E ITC can be stacked. C-PACE can also be combined with MACRS 5-year depreciation and 100% bonus depreciation.

Typical APR

0.05 to 0.08%

Term options

15, 20, 25, 30 years

Data as of: 2026-06-02

Strengths

  • 100% project financing available from some C-PACE lenders
  • Off-balance-sheet in many accounting treatments
  • Long terms (15-30 years) improve cash flow vs. traditional equipment loans
  • Transferable on property sale: buyer assumes assessment
  • Can stack with Section 48E ITC and MACRS 5-year accelerated depreciation
  • Available in 32+ states with active programs as of 2026
  • National lenders include Nuveen Green Capital, PACE Loan Group, Petros PACE Finance, Peachtree

Considerations

  • Commercial properties only: not available for residential homeowners
  • Assessment is attached to commercial property tax bill
  • Not available in all states (32+ active programs; verify at PACENation.org)
  • Qualification requirements vary by lender, program, and municipality

Best for

Commercial property owners, real estate investors, industrial facilities, multifamily developers, and nonprofits or municipalities using C-PACE with a PPA structure. Strongest ROI when stacked with Section 48E ITC and bonus depreciation.

Section 48E

C-PACE and Section 48E are compatible. Verify the construction-start deadline.

The Section 48E commercial ITC (30 percent base rate) applies to qualified energy property placed into service with a construction start before the deadline. Confirm construction-start timing with your tax advisor before signing.

Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.

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Common questions

Questions about Commercial PACE (C-PACE)

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Can C-PACE be combined with the Section 48E credit?
Yes. C-PACE and Section 48E are compatible. A commercial property owner can use C-PACE to finance the system with no upfront capital, claim the Section 48E credit against the tax liability, and apply MACRS 5-year depreciation on the remaining basis. This combination can produce a very low effective net cost. Verify with a tax advisor before the construction-start deadline.

Does C-PACE require a personal guarantee?
C-PACE typically does not require a personal guarantee. The obligation attaches to the property tax bill and is transferred with the property on sale. This makes it attractive for commercial property owners who do not want to encumber personal or business credit.

Which states have active C-PACE programs?
More than 32 states have enacted C-PACE-enabling legislation, but program specifics vary significantly. PACENation maintains a state-by-state directory. Verify whether an active C-PACE program exists in your specific county or municipality, as some states have statewide authorization but limited local program deployment.

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