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Arkansas PACE Program

a project of the Arkansas Advanced Energy Foundation

The Commercial Property Assessed Capital Expenditures (C-PACE) program is designed to finance projects centered around energy efficiency, alternative energy, building resiliency, and water conservation.

Owners of commercial, industrial, agricultural, and multi-family (more than 4 units) can take advantage of C-PACE’s low interest rates and long payback period to create positive cash flow from their building upgrades. The biggest perk to the C-PACE program is that the loan is tied to the property instead of the individual.

Arkansas Advanced Energy Foundation (AAEF) acts as the Program Administrator and oversees the revolving loan fund that provides financing for the approved projects. As a sub-awardee with Metroplan, AAEF was granted $2.8MM as part of Metroplan’s Climate Pollution Reduction Grant (CPRG) to seed the revolving loan fund.

C-PACE Overview

C-PACE Project Eligibility Check

Revolving Loan Fund Board

Contact Us

What is C-PACE?

Commercial Property Assessed Capital Expenditure (C-PACE) is a financing mechanism authorized by Arkansas Act 579 (2025) that enables commercial, industrial, nonprofit, and multifamily property owners to fund energy efficiency, renewable energy, water conservation, and resiliency improvements.

With C-PACE, 100% of project costs can be financed with long-term, fixed-rate capital, and repaid through a voluntary special assessment on the property’s tax bill. The repayment obligation stays with the property—not the owner—making it easier to invest in building upgrades that reduce utility costs, enhance property value, and support environmental and economic goals across Arkansas.

For projects in Central Arkansas, AAEF can offer capital through a revolving loan fund seeded with $2.8 million from the EPA’s Climate Pollution Reduction Grant (CRPG). In partnership with Metroplan, this fund provides loans for smaller projects within the Metroplan service area. For larger projects anywhere in the state, AAEF can help property owners take advantage of C-PACE financing through local financing institutions or national lenders.

Why use C-PACE?

C-PACE provides a powerful solution for property owners seeking to invest in energy-saving and resilient building improvements without the burden of upfront costs. Unlike traditional loans, C-PACE financing is repaid through a voluntary property tax assessment, allowing for extended repayment terms of up to 20-30 years and a fixed interest rate/ This unique structure often results in projects being cash-flow positive from day one, as energy savings can exceed annual payments.

C-PACE is ideal for upgrades that reduce utility bills, modernize aging infrastructure, and meet new energy codes. Because the repayment is tied to the property and not the owner, the assessment can transfer to new owners if the building is sold, making C-PACE an attractive tool for developers and long-term owners alike.

In addition to financial advantages, C-PACE projects help create local jobs, supports advanced energy contractors and suppliers, and contribute to broader economic and environmental goals in Central Arkansas. It’s a win-win tool for business owners, communities, and the state.

C-PACE Financing Overview (PDF)

Arkansas PACE Program Overview (PDF)

Let’s work together.

Wondering if your project is eligible for the Central Arkansas C-PACE Program?

Eligibility Check

Participants

Property Owners looking for lower energy bills and to increase their building’s value
Contractors/Developers looking to offer turnkey projects to clients
Capital Providers looking for secure, lien-based repayment with strong returns
Local Governments looking to drive economic development and job creation with no taxpayer burden

Eligible Types of Projects

HVAC upgrades,
lighting and insulation improvements,
solar and battery storage systems,
roof replacement and storm resiliency, and
water conservation systems

Project Location

We are currently accepting projects in Pulaski County, with plans to extend to the full six-county central Arkansas area (Faulkner, Perry, Pulaski, Saline, Lonoke and Grant).

Meet the Revolving Loan Fund Board

Arkansas Advanced Energy Foundation (AAEF) acts as the Program Administrator and the Revolving Loan Fund Board oversees the revolving loan fund that provides financing for the approved projects. As a sub-awardee with Metroplan, AAEF was granted $2.8MM as part of Metroplan’s Climate Pollution Reduction Grant (CPRG) to seed the revolving loan fund.