Commercial Property Assessed Clean Energy or C-PACE financing is positioned for massive growth, and could serve as a competitor to other financing sources like mezzanine and EB-5. The recent popularity of ESG investments as well as new adoption of the PACE program in New York City have shined a spotlight on the PACE program.

ESG interest has grown tremendously in the last 12 months, with several companies announcing new or increased sustainability targets. This trend will help boost demand and availability of C-PACE. "Capital is looking for viable ESG investments, and PACE is right down the middle of the fairway when it comes to ESG," Thomas O'Connor, a partner at NYC real estate law firm Duval & Stachenfeld LLP, tells GlobeSt.com. "It is a sound investment; it is long-term; and it has a fixed rate. PACE financing acts like a tax assessment, and it has the same priorities as a tax assessment. In other words, the PACE payment comes before the mortgage loan payment. It makes it a very safe, sound investment. It is basically debt that gets paid before any other debt."

Simultaneously, New York City is set to adopt the PACE program to support property owners in achieving clean energy goals in the city's Climate Mobilization Act. "The Climate Mobilization Act is going to require any building that is 25,000 square feet or more to reduce their carbon emissions by 2024 and then every five years until carbon emissions are reduced by 80% by 2050. These are real standards that are out for 2024 and 2030. If you fail to meet those standards, there are fines," says O'Connor.