c-pace new construction financing: eligible construction costs and financing requirements

Determining TECC

The Connecticut Green Bank will work with an independent Technical Administrator to determine the total eligible construction costs (TECC), and review modeling details and projected energy performance. C-PACE New Construction Financing helps pay for a variety of hard and soft costs directly related to a building’s design and construction. The sum of these costs are the TECC and are determined through a detailed review of the project’s construction budget by the Green Bank and its Technical Administrator partner. These costs may include (but are not limited to) engineering and design expenses, energy modeling, equipment or measures that consume and save energy (e.g., HVAC, lighting, elevators, controls, windows, green or cool roofs, meters, and other green energy measures), landscaping, insurance, and legal & administrative fees).

Costs associated with (but not limited to) land acquisition, marketing expenses any items not affixed to the property (e.g., plug-in appliances) are NOT eligible to be included in the TECC calculation.

Certain technologies qualify as “Bonus Technologies” that can unlock additional financing for developers.

See bonus technologies

Electric vehicle charging stations (Level 2 or better)
Battery storage systems, sized appropriately for the project (behind the meter)
High-efficiency heat pumps (air, ground, or water source, better than code & facility-wide)
Networked lighting controls (facility-wide)
Hardwired smart plug load controls (facility-wide)
Heat pump water heaters (facility-wide)
passive window shading systems, sized appropriately for the project
Fuel cell, sized appropriately for the project, in combined heat and power mode
Solar photovoltaic, sized appropriately for the project

Determining financing amount

Developers using C-PACE new construction financing will demonstrate their building’s energy performance using either whole-building energy modeling or the HERS Index (Home Energy Rating System) for multifamily properties. The building’s designed energy performance and the technologies used will determine the percentage of Total Eligible Construction Costs (TECC) that is eligible for financing.

Projects designed to exceed a code-compliant baseline by at least 5 percent based on IECC 2021 (or by 10 percent for IECC 2018 and prior) are eligible for C-PACE financing of 20 percent of TECC.
Construction projects designed to exceed a code-compliant baseline by at least 10 percent based on IECC 2021 (or 20 percent above IECC 2018 & prior) unlocks C-PACE financing of 25 percent of the TECC.
Developers have the option of incorporating two bonus technologies to finance an additional 5 percent of TECC. or of incorporating up to four bonus technologies to finance an additional 10 percent of TECC.*
Developers can also design projects to be all-electric and to achieve net zero to access C-PACE financing for up to 35 percent of TECC.