First state C-PACE deal yields $1.5M in energy, water efficiency investments for Philadelphia

The first project in Pennsylvania to use Commercial Property-Assessed Clean Energy (C-PACE) financing closed Monday under a partnership between the Philadelphia Energy Authority, Twin Financial Partners, and SHIFT Capital.

Under the agreement, SHIFT Capital borrowed $1.5 million in C-PACE financing from Twin Financial Partners to pay for energy and water efficiency upgrades to the commercial portion of J-centrel, a new mixed-use development in Philadelphia.

“C-PACE was a key tool for rounding out our capital stack, reducing ongoing operating costs, and making our building greener,” said Brian Murray, CEO and founder of Shift Capital, the developer of J-centrel. “C-PACE provided competitively priced financing and a long-term repayment schedule to make our efficiency improvements cash flow positive.”

Specifically, the C-PACE funding covers cost-reducing measures, including LED lighting, window replacements, energy recovery units, heat pumps, and low-flow plumbing. These measures are expected to decrease the building’s carbon footprint by 2,700 metric tons of CO2 equivalent.

C-PACE financing in Philadelphia was approved through legislation in June 2019 by the Philadelphia City Council, under the leadership of Councilmember Derek S. Green. State Sen. John Blake (D-Lackawanna County) sponsored the initial legislation enabling C-PACE in Pennsylvania in 2018.

“C-PACE is a game-changing tool that brings private sector investment to our city to create jobs, fight climate change, improve public health and help businesses save money,” Green said.