Practice Test Geeks(CPACE) Commercial Property Assessed Clean Energy Practice Test
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Renewable Energy Installations Flashcards

7 cards from real CPACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Renewable Energy Installations flashcards as text

  1. Under a CPACE program, which component of a solar PV system is typically the primary collateral securing the assessment lien?

    Answer: The permanently affixed improvements to real property

    CPACE assessments are secured by a lien on the real property, so permanently affixed improvements—including the entire installed system—serve as the collateral.

  2. A commercial building owner wants to add a 200 kW wind turbine via CPACE. Which site consideration is MOST critical before project approval?

    Answer: Zoning approval and setback compliance for the turbine height

    Wind turbine installations require local zoning approval and must meet setback requirements based on turbine height and local ordinances.

  3. What is the primary purpose of a production estimate (energy model) in a CPACE renewable energy project application?

    Answer: To demonstrate the project's expected energy savings relative to financing costs

    CPACE underwriting requires an energy model showing projected savings exceed or justify the assessment payment, ensuring the project is economically viable.

  4. A CPACE-financed rooftop solar system on a leased commercial property requires consent from which party in addition to the property owner?

    Answer: The mortgage lender holding a senior lien

    Most CPACE programs require existing mortgage lender consent because the CPACE assessment lien can have super-priority over the mortgage in some states.

  5. Which renewable energy technology qualifies for CPACE financing specifically because it reduces a building's reliance on grid power during peak demand periods?

    Answer: Battery energy storage systems paired with solar PV

    Battery storage paired with solar PV shifts energy use away from peak grid periods, qualifying as an energy efficiency/resilience improvement eligible for CPACE.

  6. In a CPACE transaction, the 'savings-to-investment ratio' (SIR) is used to:

    Answer: Confirm that projected lifetime energy savings equal or exceed the total financing amount

    An SIR ≥ 1.0 confirms that the present value of energy savings over the assessment term covers the total financed amount, a core CPACE underwriting requirement.

  7. A geothermal heat pump system installed at a commercial property under CPACE primarily qualifies because it:

    Answer: Significantly reduces heating and cooling energy consumption

    Geothermal heat pumps qualify for CPACE by dramatically cutting HVAC energy use, meeting the program's energy reduction eligibility requirement.