C-PACE Financing Gains Momentum in NYC — New Opportunities for Developers and Owners

New York City just hit a major milestone for clean energy financing. After years of anticipation, the first two C-PACE (Commercial Property Assessed Clean Energy) loans for new construction have officially closed — signaling a new era for sustainable development and energy-efficient construction across NYC.

A Major Step Forward for Clean Energy Projects

The NYC Accelerator (NYCA) and the New York City Energy Efficiency Corporation (NYCEEC) have announced the closing of two landmark C-PACE financing deals totaling $156 million for all-electric film and production studios in Brooklyn.

• $88 million will support a 355,000-square-foot studio in Bushwick, featuring six soundstages.

• $68 million will finance a 246,000-square-foot studio in Red Hook, with four soundstages.

Both projects meet NYC’s Ultra-Low Energy Building standard — meaning they are fully electric (no on-site fossil fuels) and designed to reduce energy use by at least 15% below baseline code. They’ll also feature solar arrays that offset around 25% of annual energy consumption, proving that large-scale, high-performance commercial buildings can be both sustainable and financially viable.

C-PACE in NYC: Finally a Reality

C-PACE financing enables commercial property owners and developers to access long-term, low-interest capital for energy efficiency, renewable energy, and electrification upgrades, repaid through a special assessment on their property tax bill.

While NYC’s C-PACE program has supported retrofit projects since 2019, a 2024 amendment expanded eligibility to include new construction — a long-awaited update that unlocks clean-energy financing for ground-up projects.

This change is a game-changer for developers seeking to build low-carbon buildings and comply with Local Law 97 without compromising financial feasibility. With this announcement, C-PACE is no longer theoretical — it’s active, tested, and ready to fund the city’s next wave of sustainable development.

Why Developers and Owners Should Pay Attention

In today’s challenging financing environment, C-PACE funding offers a rare combination of stability and sustainability:

• Long-term, fixed-rate capital (often up to 30 years)

• Potential to reduce reliance on high-cost mezzanine debt

• Enhanced project cash flow through lower operating expenses

• Support for compliance with energy efficiency and decarbonization mandates

In short: C-PACE helps make green buildings pencil out — turning sustainable design into a competitive advantage.

How KOW Building Consultants Can Help

As an official NYC Accelerator Service Provider, KOW Building Consultants helps clients take full advantage of C-PACE financing for new construction and retrofit projects.

Our team can:

• Connect project teams with C-PACE lenders, administrators, and technical experts

• Deliver construction inspection, energy compliance, and Local Law support

• Align financing and project documentation with long-term performance goals

Whether you’re planning a major renovation or a new ground-up development, our consultants can help you integrate C-PACE funding into your project strategy — from early feasibility to loan closing and construction completion.

Now’s the Time to Explore C-PACE

With the first two C-PACE loans in NYC officially closed, the market for clean energy construction financing is open and growing. If you’re a developer, lender, or building owner interested in energy-efficient commercial construction, now’s the moment to see if C-PACE can help your project move forward.

Reach out to KOW Building Consultants to learn how to leverage NYC C-PACE financing for your next sustainable development.