Vermont Passes Clean Energy Financing Bill at No Cost

Vermont property owners just gained access to a funding tool that's already generated nearly $7 billion in clean energy upgrades across America, and it won't cost taxpayers a penny.

The state legislature passed a bill creating Commercial Property Assessed Clean Energy financing, sending it to the governor's desk after years of bipartisan work. The program allows businesses, farms, and apartment building owners to finance 100% of clean energy improvements through private capital, not government spending.

Here's how it works: Property owners get long-term, fixed-rate loans from private lenders to install solar panels, efficient heating systems, LED lighting, or water conservation measures. They repay the loan over up to 30 years through a voluntary addition to their property tax bill.

The math often works in owners' favor from day one. Annual energy savings typically exceed the annual payment, making projects cash-flow positive immediately.

If someone sells their property, the financing transfers to the new owner along with the building's lower energy bills and improved efficiency. This structure encourages upgrades that might otherwise get postponed because of high upfront costs.

"C-PACE VT will provide powerful economic benefit as a public asset tool that operates at zero cost to taxpayers," said Michele Pitale of CounterpointeSRE, a national C-PACE provider.

The program requires written consent from existing mortgage lenders before financing can proceed, protecting all parties involved. Municipalities can choose whether to opt in, keeping control local.

The Ripple Effect

Nationwide, C-PACE programs have created an estimated 86,500 job-years in construction, engineering, and green energy trades. Vermont's program is projected to unlock hundreds of millions in private investment over the coming years.

The economic multiplier reaches beyond energy savings. Projects range from new affordable housing to adaptive reuse developments like the proposed Greatwood Farm creative campus at Goddard in Plainfield.

CounterpointeSRE has already financed major transformations including a $255.9 million adaptive reuse in San Francisco and a $156 million film studio in New York City. The firm is preparing to serve Vermont property owners once the governor signs the bill.

Vermont had limited residential PACE authority since 2013, but this closes the gap for commercial properties, which consume a major portion of statewide energy. The multi-year development process involved extensive input from lenders, developers, municipalities, and economic leaders.

The state joins more than 40 others proving that environmental progress and economic growth can advance together when the right tools meet private investment.