A decade ago, C-PACE (Commercial Property Assessed Clean Energy) financing was a niche financial product that many in the industry knew only by name, if at all. Today, it’s recognized as the versatile and reliable instrument that it is. Here, Connor Murch, SVP Originations with Petros PACE Finance, discusses the ways in which owners and developers are using C-PACE in 2026, along with guidelines on deriving the greatest benefit from this type of financing.
Q: Since its inception, C-PACE has seen steady growth and adoption. Do you expect that growth to continue, and how has it changed C-PACE’s role in the capital stack?
Connor Murch: The growth we have seen in C-PACE over the last decade has been remarkable. Back in 2016 or so, it was viewed as a niche financing tool and often mischaracterized as simply “green capital.” Today, that perception has changed. While C-PACE still supports energy-efficient property measures, developers now understand its full potential as a strategic part of the capital stack. In fact, we’re now seeing people lock in C-PACE first and then build the rest of their capital stack around it.
A big driver of this change is institutional adoption, as more lenders and investors recognize C-PACE as a low-cost and flexible tool rather than just a gap-filler. That shift is why we are seeing fewer sub-$10 million deals and an increasing number of larger projects, even into the $100 million, $200 million level and beyond. I expect that trend to continue as more and more institutional players recognize the value of C-PACE.
Q: What are developers and owners looking for from a C-PACE provider today?
CM: Interest rate changes in recent years have made C-PACE an attractive and affordable financing solution, but developers are no longer looking for just the cheapest price. Today, they are looking for trust and expertise to provide them with certainty of close. They want partners who do what they say and communicate clearly along the way. Relationships and continuity of support are also incredibly important. Some C-PACE providers operate with large, layered teams, which can require developers to work with multiple points of contact throughout the process. At Petros, our team is smaller by design, and our originations and underwriting groups work hand-in-hand during the closing along with in-house legal counsel. We’ve found that developers and owners really appreciate having a key person who owns their project from start to finish and is there to guide them along the way.
Q: How early in the process should owners or developers typically engage Petros, and why is that timing important?
CM: These days, we say the earlier the better. At Petros, we aren’t just helping sponsors secure C-PACE financing. We see ourselves as an extension of the developer’s team and act as a true advocate that is committed to helping get the project funded. We have strong senior lender relationships that we routinely pair up with, collaborating to work up full-stack solutions, and we have experience navigating local and state building ordinances. The earlier a project comes to us, the sooner we can help make it a reality.
Q: What differentiates Petros from other C-PACE providers when it comes to navigating program or policy challenges?
CM: A key differentiator for Petros is our in-house policy expertise and experience across different markets. If you bring us a project in a city or county that isn’t yet opted into a local C-PACE program, we can explore potential options and work to get that area included. If you’re looking to refinance a project and it falls outside the lookback period, we can review the situation and work directly with the program administrator to identify possible solutions. Our goal is always to do what we can to help our partners move their projects forward and achieve their objectives.
Q: What advice would you give developers or owners considering C-PACE financing in today’s market?
CM: Commercial real estate is always changing, and capital markets are constantly shifting. It’s a dynamic industry, and it’s important to have a lending partner who can adapt and navigate those changes with you while also providing certainty of close. It’s also critical to work with a partner who fully understands how your business plan and capital stack fit together. The right partner will be steady yet agile, and laser-focused on helping get your project built, renovated, or refinanced. In today’s market, the right partner makes all the difference and is key to unlocking C-PACE’s potential.
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