CPACE Eligible Improvements 2 — Questions and Answers
Question 1: Which roofing upgrade is most commonly eligible under a C-PACE program?
- Standard asphalt shingle replacement
- Cool roof systems with high solar reflectance (Correct answer)
- Decorative architectural facades
- Routine roof patching and sealing
Correct answer: Cool roof systems with high solar reflectance
Cool roof systems qualify because they reduce heat absorption, lowering cooling energy demand and improving energy efficiency.
Question 2: A hotel installs a commercial-grade heat pump water heater system. Is this C-PACE eligible?
- No, water heating is excluded from C-PACE programs
- Yes, heat pump water heaters are an eligible energy efficiency measure (Correct answer)
- Only if the hotel is classified as affordable housing
- Only if paired with a solar installation
Correct answer: Yes, heat pump water heaters are an eligible energy efficiency measure
Heat pump water heaters are eligible because they use significantly less energy than conventional electric or gas water heaters.
Question 3: What distinguishes a 'water efficiency' improvement eligible for C-PACE from a standard plumbing upgrade?
- Water efficiency improvements must be visible from the street
- Eligible improvements must measurably reduce potable water consumption (Correct answer)
- Standard plumbing upgrades qualify if they are less than 5 years old
- Any licensed plumbing work qualifies automatically
Correct answer: Eligible improvements must measurably reduce potable water consumption
C-PACE water efficiency improvements must demonstrate quantifiable reduction in water use, such as low-flow fixtures or irrigation controls.
Question 4: A commercial landlord wants to install EV charging stations in a parking garage. Under most C-PACE programs, this is:
- Ineligible because EV charging is not an energy-producing asset
- Eligible as a clean energy or demand management improvement (Correct answer)
- Only eligible if the property is a multifamily building
- Eligible only when paired with an on-site solar array
Correct answer: Eligible as a clean energy or demand management improvement
Many C-PACE programs include EV charging infrastructure as an eligible clean energy or transportation electrification improvement.
Question 5: Which of the following HVAC improvements would most likely be ineligible for C-PACE financing?
- High-efficiency variable refrigerant flow (VRF) system
- Energy recovery ventilation (ERV) units
- Like-for-like replacement of a broken furnace with the same model (Correct answer)
- Demand-controlled ventilation upgrades
Correct answer: Like-for-like replacement of a broken furnace with the same model
A like-for-like replacement that does not improve energy efficiency does not meet the energy improvement threshold required by C-PACE.
Question 6: Seismic retrofits are eligible under some C-PACE programs because they:
- Generate renewable energy
- Reduce long-term insurance costs for the state
- Are classified as resilience improvements that protect against natural hazards (Correct answer)
- Qualify as water efficiency measures
Correct answer: Are classified as resilience improvements that protect against natural hazards
Several states have expanded C-PACE to include resilience improvements like seismic retrofits that protect buildings from natural disaster damage.
Question 7: A retail strip mall installs a battery energy storage system (BESS) paired with existing rooftop solar. The BESS is:
- Ineligible because storage is not a clean energy source
- Eligible as an energy storage improvement under C-PACE (Correct answer)
- Only eligible if the battery capacity exceeds 1 MW
- Only eligible if it is the primary project, not a paired improvement
Correct answer: Eligible as an energy storage improvement under C-PACE
Battery energy storage systems are eligible under most C-PACE programs as they optimize clean energy use and improve grid resilience.
CPACE Eligible Improvements 2
Which roofing upgrade is most commonly eligible under a C-PACE program?