Displayed below is a list of Frequently Asked Questions (FAQs). Click on the “>” icon associated with each question to view the answer.

What is Delaware C-PACE?

Commercial property assessed clean energy, or C-PACE, is a program that helps property owners access private-sector financing for the installation of building improvements that can reduce energy consumption and can increase the value of their property. With C-PACE, property owners can receive up to 100 percent financing with attractive repayment terms that are consistent with the useful life of the improvements (up to 25 years). In well-designed C-PACE projects, the energy cost savings may exceed the PACE payments, creating a cash-flow-positive project. The financing is secured with a voluntary benefit assessment that is recorded against the property and is repaid directly to the capital provider.

C-PACE is also available to developers with new construction projects if they design their building to exceed current energy codes.

What are the responsibilities for a county participating in the C-PACE program?

The county’s Office of the Recorder of Deeds, in collaboration with the program administrator and the capital provider, will levy the C-PACE benefit assessment against a property that has received C-PACE financing. Subject to the terms of the financing agreement, the county is responsible for the ongoing billing, collection, and remittance of funds collected in the same manner as property assessments of the participating county.

What are the benefits to counties that participate in the C-PACE program?

The Delaware C-PACE program benefits counties in multiple ways. Thanks to C-PACE, the state will enjoy new investment, and its residents will enjoy more job opportunities, greater energy savings, and improved air quality—all financed with private capital, not taxpayer dollars.

What are the costs to county governments?

Delaware C-PACE expects minimal administrative costs to be incurred by participating counties.

How does a county become eligible to offer C-PACE financing?

In order to become eligible, the Delaware C-PACE Statute requires a county to adopt a resolution that empowers it to enter into a Delaware C-PACE agreement between Energize Delaware and the county. Once the county and Energize Delaware sign the Participation Agreement, that county will be part of the C-PACE program, and projects located within that county may be funded using C-PACE financing. 

Will C-PACE support counties that wish to participate in outreach and education efforts?

Yes. Contact the program administrator at info@DelawareCPACE.org to discuss potential outreach and education efforts in your county.

What happens if the property owner defaults on a C-PACE payment?

Under the 2018 Delaware Energy Act, the voluntary benefit assessment may be neither extinguished nor accelerated in the event of default or bankruptcy; and shall be levied and collected as to assessment payments currently and past due in the same manner as the property assessments of the participating county government on real property; and shall not extinguish any superior liens, such as the lien for property taxes, and other governmental service assessments.

The benefit assessment may remain with the real property upon sale, including in the event of a foreclosure. In the event of default or delinquency, it may be pursued in the same manner as with other property assessments, including with respect to any penalties, fees and remedies and lien priorities; provided that a foreclosure sale brought with respect to C-PACE assessments shall not have the effect of extinguishing any subordinate mortgage liens against the qualifying commercial real property.

Notwithstanding any other provision of law: At the time of a transfer of property ownership including foreclosure, the past due balances of any special assessment shall be due for payment, but future payments shall continue as a lien on the property.

In the event of a foreclosure action, the past due balances shall include all payments on an assessment that are due and unpaid as of the date the action is filed, and all payments on the assessment that become due after that date and that accrue up to and including the date on which title to the property is transferred to the mortgage holder, the lien holder, or a third party in the foreclosure action. The person or entity acquiring title to the property in foreclosure shall be responsible for payments that become due after the date of such acquisition.

What are the risks associated with C-PACE financing?

If a property owner is deficient or delinquent on the C-PACE payment, the county is not responsible for covering the shortfall. In the case of a non-payment, the voluntary benefit assessment (which is a priority lien) will fall into arrears and be repaid after all other taxes are satisfied and prior to any outstanding mortgage.

In the event of a bankruptcy, how is recovery money allocated?

Local property taxes and other governmental service assessment liens have first priority, followed by any C-PACE payments in arrears, followed by any previously recorded mortgage lien on the property only if a written consent agreement is executed by the holder of each such previously recorded lien.

Who administers Delaware C-PACE?

Energize Delaware administers the C-PACE program.

Which counties participate in Delaware C-PACE?

Visit the Participating Counties page for a current list of counties participating in the Delaware C-PACE program. C-PACE may only accept applications from property owners with properties located in counties that have joined the program by passing a simple opt-in resolution. Email info@DelawareCPACE.org if you have questions about getting a non-participating county to join C-PACE.

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