What is the role of the C-PACE lien in the Green Bank Solar PPA?

What is the role of the C-PACE lien in the Green Bank Solar PPA?

• A. To regulate the price of solar panels
• B. To back the solar power purchase agreement where possible
• C. To ensure compliance with environmental regulations
• D. To provide tax credits for investors

Answer: (B)

The role of the C-PACE lien in the Green Bank Solar Power Purchase Agreement (PPA) is to back the solar power purchase agreement where possible. C-PACE, or Commercial Property Assessed Clean Energy, enables property owners to finance energy efficiency and renewable energy projects through a lien on the property. This financial mechanism allows for the costs of installations such as solar panels to be repaid over time via property tax assessments. In the context of a solar PPA, the C-PACE lien can provide a level of security for financing, ensuring that the capital providers or investors have a recourse in case of non-payment or default. It creates a tangible financial commitment that can enhance the attractiveness of the PPA to potential investors while supporting the deployment of solar energy by reducing upfront costs for property owners. The presence of this lien underpins the financial structure of the PPA, facilitating the successful implementation of renewable energy projects.

The role of the C-PACE lien in the Green Bank Solar Power Purchase Agreement (PPA) is to back the solar power purchase agreement where possible. C-PACE, or Commercial Property Assessed Clean Energy, enables property owners to finance energy efficiency and renewable energy projects through a lien on the property. This financial mechanism allows for the costs of installations such as solar panels to be repaid over time via property tax assessments.

In the context of a solar PPA, the C-PACE lien can provide a level of security for financing, ensuring that the capital providers or investors have a recourse in case of non-payment or default. It creates a tangible financial commitment that can enhance the attractiveness of the PPA to potential investors while supporting the deployment of solar energy by reducing upfront costs for property owners. The presence of this lien underpins the financial structure of the PPA, facilitating the successful implementation of renewable energy projects.